Not Micron, Not Sandisk. This Chip Stock Could Be the Biggest Winner of the AI Memory Boom
Lam Research gets a nice chunk of its revenue from sales of memory manufacturing equipment, and that's great news for its future.
Overview
Micron Technology and Sandisk have benefited significantly from the memory chip boom over the past year, as the demand for the dynamic random-access memory (DRAM) and NAND flash storage chips they manufacture has significantly exceeded supply.
Of course, investors have been rotating out of memory stocks lately, as evidenced by the 27% decline in the Roundhill Memory ETF over the past month. Both Micron and Sandisk have witnessed significant pullbacks in their stock prices over this period. However, the artificial intelligence (AI)-fueled memory chip demand isn't going to fade away any time soon.
Details
According to Deloitte, the memory crunch is unlikely to ease until 2029. While that's great news for both Micron and Sandisk, there is another company that's benefiting from the incredible memory demand -- Lam Research (NASDAQ: LRCX). Let's look at the reasons why this semiconductor stock could become the biggest winner of the AI-driven memory boom.
Source
Originally published at www.fool.com.