Lam Research Shares Drop 6% Post-Earnings as Cramer Predicts 2027-28 Gains
Lam Research reported strong quarterly results but shares fell nearly 6% after Friday’s open despite being the sixth-best S&P 500 performer in January. Jim Cramer praised the company’s leading semiconductor capital equipment intellectual property and advised investors to buy more and average down ahead of capacity-driven gains in late 2027-28.
1. Cramer’s Buy Recommendation
During the February 2 episode Jim Cramer urged investors to buy more Lam Research shares and average down regardless of purchase price, stating the company holds the best intellectual property in semiconductor capital equipment and predicting that the stock will rise over time.
2. Recent Financial Performance
Lam Research ranked sixth among S&P 500 stocks in January and reported strong quarterly results, but its shares fell nearly 6% after Friday’s open as initial post-earnings gains reversed.
3. Long-Term Industry Outlook
Cramer noted that new semiconductor capital equipment coming online is unlikely to alleviate chip shortages until late 2027 or early 2028 and suggested deploying a quarter of a position initially, then adding exposure as capacity ramps up.