Judy,
Do you buy this?
Lam Research Rises on Optimism for Better Demand, Market Share
Fremont, California, Jan. 5 (Bloomberg) -- Lam Research Corp. shares rose as much
as 19 percent amid optimism that the maker of semiconductor equipment is poised to
win more orders for its products and gain market share from Applied Materials Inc.
Lam rose 3 1/16 to 22 1/16 in midday trading of 1.94 million. Earlier, the shares
touched 22 41/64, their highest since June 24. The stock has more than doubled in the
past three months.
Orders for chip equipment are beginning to rebound after plunging to a five-year low in
September. Lam may stand to benefit more than its chief rival, industry leader Applied
Materials, from new spending by semiconductor companies because some of its
products are better, said Mike O'Brien, an analyst at SoundView Technology Group
Inc.
''Their ability to gain market share as we go into 1999 is greatly increased,'' said
O'Brien, who today upgraded Lam to ''buy'' from ''hold'' and expects its shares to rise
to $30 in the next 12 months. ''Lam's products are much better positioned than they
were a year ago.''
Fremont, California-based Lam makes equipment that chipmakers use to etch wires on
silicon chips from ultra-thin layers of aluminum or copper. O'Brien said the company is
likely to receive orders for polysilicon etch machines from memory-chip makers, which
cut spending over the past year due to overcapacity and plunging prices.
''Lam still is the leader in that area,'' he said.
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