Lam Research to Invest Rs 10,000 Crore in India Semiconductor Manufacturing Facility

Bank of America raised its 2030 global semiconductor sales forecast to $3.2T, up from $2.7T, citing strong AI-driven demand. The firm upgraded price targets for Nvidia (NVDA), AMD (AMD), Marvell (MRVL), Applied Materials (AMAT), and Lam Research (LRCX), all rated Buy. Chip stocks rebounded modestly on Sept. 15 after recent sell-offs.

Lam Research (LRCX) reported $6.72B in Q4 revenue, up 30% YoY, while Applied Materials (AMAT) reported $9.12B, up 24.8% YoY. Both companies are benefiting from AI-driven semiconductor demand. Analysts debate which stock correlates more closely with ASML (ASML), with Lam Research seen as more tightly coupled to ASML's EUV systems.

Shares of Applied Materials, Lam Research, Monolithic Power Systems, Marvell Technology, and MACOM fell 6.4%, 7.7%, 7.1%, 6.9%, and 11.9% respectively, after CEOs of Anthropic, OpenAI, and SpaceX called for a slowdown in AI development, raising concerns about tech valuations and chipmaker earnings.

AI-related stocks fell globally after industry leaders warned of potential risks. Nvidia, AMD, Micron, and others declined. OpenAI's Altman postponed an IPO. Concerns include AI misuse and economic impact. Some investors dismiss warnings, citing growth prospects. Anthropic plans a public debut with Nvidia as a potential investor.

Applied Materials (AMAT) and Lam Research (LRCX) fell 6% each, while ASML (ASML) dropped 5% as AI CEOs called for slower model development, raising concerns about chip equipment demand. Applied Materials reported record Q3 revenue of $9.12B, up 25%, but investors question growth sustainability. The SOXX semiconductor ETF declined 5%, while the broader market (SPY) fell 0.5%.

Lam Research (LRCX) raised its 2026 wafer fabrication equipment (WFE) outlook, citing strong AI-driven demand. The company increased its NAND market estimate and expects higher spending on foundry, logic, and advanced packaging. Lam is expanding manufacturing capacity and sees growth in products like Akara and Aether. Profitability is improving, with gross margins reaching 52%. China's share of industry revenue may decline over time.