Did IBM Just Tell the Truth About AI?
Lam Research is a semiconductor machine business that’s breaking records, but its stock price has been cut nearly in half from highs in 2026. Is it a good stock to buy right now?
In today's episode of Motley Fool Hidden Gems Investing, hosts Jon Quast, Matt Frankel, and Lou Whiteman discussed IBM's recent financial results and the AI market. IBM's stock experienced a decline, while its revenue increased. The company's service business, which includes customer support and spare parts, reported a 40% increase in sales, with expectations to grow by 30% in the upcoming year.
This recurring revenue stream is crucial for Lam Research, a company that provides essential machinery for the semiconductor industry. The hosts also explained the concept of advanced packaging, a technology that stacks and connects multiple chips together, driving growth in AI chips and high-bandwidth memory. Lam Research expects this sector to grow by 70% this year, despite concerns about cyclical industry cycles.
Management reassured investors that the company can withstand these cycles and potentially see growth through 2028.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Did IBM Just Tell the Truth About AI? nasdaq.com
