Top Analyst Has 4 Red-Hot Semiconductor Capital Equipment Stocks to Buy Now for 2021

Lam Research also provides SPEED gapfill high-density plasma chemical vapor deposition products and Striker single-wafer atomic layer deposition products that provide multiple dielectric film solutions. In addition, the company offers Flex for dielectric etch applications, Kiyo for conductor etch applications, Syndion for through-silicon via etch applications and Versys metal products for metal etch processes.

Lam Research’s Coronus bevel clean products enhance die yield. Its Da Vinci, DV-Prime, EOS and SP address a range of wafer cleaning applications, and Metryx mass metrology systems offer high precision in-line mass measurement in semiconductor wafer manufacturing.

Shareholders receive a 0.90% dividend. The $590 BofA Securities price target is well above the $492.17 consensus price objective. Lam Research stock closed on Tuesday at $580.02, up almost 6% on the day.


This lesser known semiconductor capital equipment leader also could have solid upside potential and may offer some of the best value in the industry. Teradyne Inc. (NYSE: TER) is a supplier of automation equipment for test and industrial applications.

The company designs automatic test systems used to test semiconductors, wireless products, data storage and electronic systems in the consumer, wireless, auto, industrial, computing, communications and aerospace/defense markets. Industrial automation products include collaborative robots used by global manufacturing and light industrial customers to improve manufacturing efficiency and reduce costs.

Many analysts on Wall Street point to the company as a somewhat ancillary play to the sector and have often cited the growing robotics silo as more of a reason to own the shares than the fundamentals related to wafer fab equipment. The company also has consistently bought back its shares.

BofA Securities lifted its $125 price target to $150. The consensus target is $119.21, and Teradyne stock was last seen on Tuesday at $140.63.

These four top companies are executing well and still look to have very solid upside to the BofA Securities price targets. Their stocks are better suited for accounts with a somewhat higher risk tolerance, as they could be a touch more volatile, given the solid runs they have all made. Due to those large moves, it may make sense to scale buy shares, in case we get a sizable sell-off.