Lam Research, a key player in the semiconductor manufacturing equipment industry, has seen its stock decline nearly 30% during the recent tech sell-off. Despite this drop, the company remains a strong investment opportunity due to its essential role in the semiconductor supply chain. As a leading provider of wafer fabrication equipment used by giants like Taiwan Semiconductor, Samsung, and Intel, Lam Research is poised to benefit from the expected growth in the semiconductor market, driven largely by AI. With a forward price-to-earnings ratio of 22.6 for 2025 and 17.6 for 2026, the stock offers an attractive valuation compared to its peers. Additionally, Lam Research boasts a substantial competitive advantage with a 47.6% gross profit margin and invests around $2 billion annually in research and development to maintain its technological edge.