1 Top Chip Stock That Could Soar in 2024

The market has been pleased with top memory chipmaker Micron Technology's (NASDAQ: MU) mounting comeback. Memory chip inventories skyrocketed in 2022 as PC and smartphone sales dropped and Micron's customers pared back spending to manage their cash during the downturn. However, as the generative AI hype has developed into a full-fledged industry with massive growth potential, demand for bleeding-edge memory has ratcheted back up. In anticipation of a multi-year run-up for Micron's sales, especially for AI applications, Micron stock has rallied an impressive 70% in 2023, and is homing back in on all-time highs.

There's just one problem: Micron is still rebuilding its way back to profitability after its massive slump in the last year. But there's another way to play the memory chip market, a stock that could be poised to soar in 2024 and beyond.

Lam Research (NASDAQ: LRCX) is part of what I call the "fab five," the five companies that control the majority of equipment bought by semiconductor fabs (a facility that manufactures silicon wafers, which eventually get diced into chips). Besides Lam, the third-biggest of this group, there's ASML Holding, Applied Materials, Tokyo Electron, and KLA Corp.

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Source Fool.com