Lam Research just ripped higher, with the stock jumping 18% to US$297.72 after earnings, even though it had been under pressure over the past month. The spark was simple: chip equipment buyers are spending again and Lam reported record revenue of US$6.72b for the June quarter, capped by its highest gross margin in two decades at 52%. That is the headline today. The real question for you is whether this memory and foundry spending surge, paired with Lam’s rich 51.3x P/E, can sustain a multi year payoff rather than just a one day spike.

Love Lam Research’s record revenue and 52% gross margin but hesitant about paying a 51.3x P/E for one stock tied closely to memory and foundry cycles? Consider spreading that risk across our hand…