Ambarella Inc (AMBA)vsLam Research Corp (LRCX)
AMBA
Ambarella Inc
$86.78
+3.57%
TECHNOLOGY · Cap: $3.77B
LRCX
Lam Research Corp
$311.35
+1.82%
TECHNOLOGY · Cap: $397.58B
Smart Verdict
WallStSmart Research — data-driven comparison
Lam Research Corp generates 5634% more annual revenue ($23.23B vs $405.19M). LRCX leads profitability with a 31.3% profit margin vs -17.2%. LRCX appears more attractively valued with a PEG of 1.38. LRCX earns a higher WallStSmart Score of 78/100 (B+).
AMBA
Avoid28
out of 100
Grade: F
LRCX
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+15.3%
Fair Value
$78.92
Current Price
$86.78
$7.86 discount
Margin of Safety
+12.9%
Fair Value
$352.89
Current Price
$311.35
$41.54 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
16.9% revenue growth
Mega-cap, among the largest globally
Every $100 of equity generates 58 in profit
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 37.4%
Revenue surging 30.0% year-over-year
Conservative balance sheet, low leverage
Areas to Watch
0.0% earnings growth
Distress zone — elevated risk
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 36.8x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : AMBA
The strongest argument for AMBA centers on Debt/Equity, Revenue Growth. Revenue growth of 16.9% demonstrates continued momentum.
Bull Case : LRCX
The strongest argument for LRCX centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.3% and operating margin at 37.4%. Revenue growth of 30.0% demonstrates continued momentum.
Bear Case : AMBA
The primary concerns for AMBA are EPS Growth, Altman Z-Score, Piotroski F-Score.
Bear Case : LRCX
The primary concerns for LRCX are P/E Ratio, Price/Book. A P/E of 54.8x leaves little room for execution misses.
Key Dynamics to Monitor
AMBA carries more volatility with a beta of 2.11 — expect wider price swings.
LRCX is growing revenue faster at 30.0% — sustainability is the question.
LRCX generates stronger free cash flow (822M), providing more financial flexibility.
Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LRCX scores higher overall (78/100 vs 28/100), backed by strong 31.3% margins and 30.0% revenue growth. AMBA offers better value entry with a 15.3% margin of safety. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Ambarella Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Ambarella, Inc. develops semiconductor video solutions that enable high definition (HD) and ultra HD compression, image processing, and deep neural network processing globally. The company is headquartered in Santa Clara, California.
Lam Research Corp
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Lam Research Corporation is an American corporation that engages in the design, manufacture, marketing, and service of semiconductor processing equipment used in the fabrication of integrated circuits. Its products are used primarily in front-end wafer processing, which involves the steps that create the active components of semiconductor devices (transistors, capacitors) and their wiring (interconnects). The company also builds equipment for back-end wafer-level packaging (WLP), and for related manufacturing markets such as for microelectromechanical systems (MEMS). The company is headquartered in Fremont, California, in the Silicon Valley.
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