Munger Mode rating: 3 out of 5 — Hold. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
The verdict in one paragraph: Lam Research is a genuinely wonderful business — one of the small handful of true tollbooths on the road to every advanced semiconductor made on Earth. It earns returns on invested capital north of 50%, holds process-of-record positions that competitors cannot dislodge for years at a time, and is run by honest, able people who have returned tens of billions to shareholders without a single foolish acquisition. But wonderful is not the same as cheap. After a 248% run over the past twelve months, the market is paying roughly 53 times trailing earnings — earnings that themselves sit at a cyclical record — for a company whose revenue has historically declined double-digits every third or fourth year. We would be delighted to own Lam at the right price, and if we owned it already we would sit tight. We would not commit new capital at $306.
Recent filings analysed: 10-K (2026-08-07), 8-K (2026-07-29), 10-Q (2026-04-23), 8-K (2026-04-22).
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