Prominent investor Jim Cramer has called on Lam Research (LRCX) to accelerate its factory expansion, citing strong demand for semiconductor manufacturing equipment. The push comes as global chip production pressures mount and industry leaders prepare for AI-driven technology cycles.
- Jim Cramer has urged Lam Research (LRCX) to expand manufacturing capacity by 'putting up plants'.
- LRCX reported a 17% YoY increase in equipment orders in Q4 2025.
- Current production capacity utilization at LRCX stands at 92%.
- TSMC and Samsung are planning over $100 billion in new fab investments through 2027.
- Analysts project $45 billion in capital spending on advanced packaging and manufacturing tools by 2026.
- LRCX shares rose 4.3% following Cramer’s commentary.
Jim Cramer, a leading voice in retail investor circles, has publicly urged Lam Research (LRCX) to 'put up plants'—a directive signaling the need for accelerated expansion of manufacturing facilities. The comment, made during a recent financial segment, underscores growing market expectations for LRCX to scale its production infrastructure to meet rising demand across the semiconductor ecosystem. The semiconductor equipment sector is experiencing heightened demand, driven by the global rollout of AI infrastructure, advanced logic chips, and next-generation memory technologies. Lam Research, a key supplier of deposition and etch systems, has reported a 17% year-over-year increase in equipment orders in Q4 2025, reflecting sustained client appetite. With current production capacity operating at approximately 92% utilization, leadership is under pressure to address potential bottlenecks. Cramer’s remarks follow a broader industry trend: major foundries like TSMC and Samsung are investing over $100 billion in new fabs through 2027, creating a ripple effect on equipment providers. Analysts estimate that $45 billion in new capital expenditures will be allocated to advanced packaging and high-volume manufacturing tools by 2026, with Lam Research positioned to capture a significant share. The statement has already prompted increased trading volume in LRCX, with shares rising 4.3% in early morning trading. Institutional investors are reportedly reassessing supply chain resilience strategies, with several large tech firms evaluating dual-sourcing options for critical tooling. The market’s reaction highlights the influence of high-profile commentary on investor sentiment in the semiconductors sector.