Executive Summary

Lam Research (LRCX) dominates two specific steps in chipmaking: Etch (removing material) and Deposition (adding material). The thesis is "Vertical Scaling." Since we can't make chips much smaller (physics limits), we are building them taller (3D NAND, HBM). Building tall structures requires drilling incredibly deep, precise holes. That is Lam's monopoly.

1. 3D NAND & HBM

• Cryo Etch: To drill a hole through 300 layers of memory without the hole collapsing requires extreme engineering (Cryogenic Etching). Lam owns this technology.
• Memory Exposure: Lam is more exposed to the Memory market (Samsung/Micron) than logic. The AI Memory supercycle benefits Lam disproportionately.

Risks to the Thesis

1. Memory Winter: If memory prices crash, Lam crashes harder than AMAT.
2. China: A huge percentage of Lam's installed base is in China.

Conclusion

Lam Research is the "Pick and Shovel" play for the 3D architecture of modern chips.