The Zacks Electronics - Semiconductors industry players like AMAT, LRCX and FORM gain from the growing proliferation of AI that is driving sustained demand for advanced semiconductors.

LRCX, TSMC and MPC offer exposure to AI and energy as Q3 earnings estimates point to strong growth and potential catalysts.

Lam Research, the wafer-fabrication equipment supplier (LRCX), slipped approximately 0.8% at 11.14am ET to $344.64 in the October 5 snapshot, despite a higher B

Neville Rodie and Shaw Inc. trimmed its holdings in Lam Research Corporation (NASDAQ: LRCX) by 5.9% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 228,646 shares of the semiconductor company's stock after selling 14,381 shares during the quarter. Lam Research makes

LRCX sees NAND upside as AI boosts storage demand, with its served market per wafer set to double from 128 to 500-plus layers.

Artificial intelligence (AI) is driving increased index and tech sector concentration in semiconductor and hardware companies. Earnings growth supports higher semiconductor stock valuations.

Lam Research is rated a cautious Buy, with long-term upside driven by demand for advanced chip production and packaging equipment. LRCX's growth is underpinned by increasing chip complexity, which requires more processing steps and drives both equipment and recurring service revenue. At ~$340, LRCX trades at 35.9x forward EPS—well above its five-year average—so valuation already anticipates robust earnings growth.

Lam Research (LRCX) reached $347.49 at the closing of the latest trading day, reflecting a +2.17% change compared to its last close.

Lam Research Corporation is poised for robust September Quarter results that show accelerating growth and expanding margins. The company's history of top and bottom line outperformance underpins the confidence in growth and profitability. Profitability improvements stem from strategic operational efficiencies and pricing power, with non-GAAP gross margin and operating margin set to climb.

Here is how Lam Research (LRCX) and Avnet (AVT) have performed compared to their sector so far this year.