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How do you play the memory boom without chasing these data storage stocks? The four big players in the space, Micron, Western Digital, Seagate just reported, and Sandis, each more than tripled last year, and they keep running in 2026. Just since the beginning of the year, SanDisk has more than double.
The other three are up anywhere from 35 to 50%. I don't want to chase those. I don't chase the storage memory place because even though there's a severe shortage of this stuff thanks to the data center buildout, it really doesn't take much to derail these commodity chip makers. Maybe the Korean competitors like Samsung SKH Highex will expand their production capacity without our knowledge.
Maybe the hyperscalers look at the sky-high prices of memory and data storage products and decide it's time to dial back their data center investments. Possibility. We'll find out soon enough. Even the smallest disruption could crush these stocks. I've seen it happen so many times before. Given how much they've already run if you don't already own them, let's just say I think you're too late.
But there is a relatively safer way to play the same theme. These are not safe stocks, but safer versus those others. And that's the semiconductor capital equipment plays. Whenever there's a chip shortage like we have now, sooner or later, these companies start buying more manufacturing equipment in order to boost production.
That's why ASML, Applied Materials, KLA, and Kramer Fave Lamb Research have been roaring because people know that they'll have big orders as the year goes on. The big four semiconductor capital equipment makers rallied like crazy last year. They're up anywhere from 29 to 39% just since the beginning of January.
You're not early, but they haven't run nearly as much as the storage and memory makers. So, relatively, they've still got more room to run. Plus, I think this industry has a lot more going for it. Uh, two weeks ago, Taiwan Semi, the world's largest semiconductor manufacturer, reported a total blowout quarter.
More important, management said that the demands on fire. They plan to invest heavily in building out the production capacity. For this year, Taiwan semi-guided for 52 to 56 billion in capital expenditures. That'd be up 27 to 37% from last year. Wall Street was expecting less than 45 billion. When management was asked if that would be enough to fix the chip shortages, their answer was a clear no.
Taiwan semi doesn't see supply and demand coming into balance until 2028 or 2029. So they're planning to keep their capital expenditures high for the next few years. Again, great news for the semiconductor capital equipment makers. Now, the specific commentary was about Taiwan semiinvesting to meet demand for AI semiconductors, not necessarily memory or data storage chips.
But if anything, that's better for the capital equipment makers because manufacturing AI chips requires more advanced hardware. ASML is best positioned for this type of leading edge equipment. But all the big four semi-ductor capital equipment companies participate in the market, which is why they all had such huge gains in response to Taiwan semiquarter.
Rational. We got another big clue the very next day when I got a chance to interview Sanjay Marocha, the CEO of Micron. What a stock on what a company on Squawk on the street. That's when Micron broke ground on a hundred billion dollar semiconductor foundry in our state, New York. While that facility won't be up and running until 2030, you better believe it needs equipment.
On top of that, Micron's working on a new fab in Boise, Idaho, which will begin adding output by the second half of 2027. Micron also broke ground on a new fab in Singapore yesterday. That should start producing in the second half of 2028. Dizzying, right? The key takeaway, Micron's investing in new production now, and it'll continue investing in new production for several years into the future, which means consistent orders for Lamb Research, KLA, and Applied Materials.
Finally, when Intel reported last Thursday, the stock got clobbered. Remember, it was down 17% on Friday, another 5% on Monday before stabilizing today. That's not because the numbers were bad. The quarterly results were actually quite good. Instead, Intel gave dismal guidance because they just don't have the ability to meet the demand for their chips.
From my own reporting, I've found out that Intel simply doesn't have enough manufacturing equipment. It didn't predict the strength of its own markets correctly. Again, as with Taiwan Semi, this isn't about memory chips. In this case, it's CPUs that Intel can't make enough of. That means more business for the capital weapon makers, especially Lamb Research.
CPUs are the bread and butter. Lamb's also one of the leading providers of the type of equipment used to make memory chips. So, they'll be one of the first companies to benefit as the memory and data storage companies look to boost their productions, which I know they want to. That's why this stock valued 137% last year before tacking on another 39% gain in January.
Now, some of these semid capital equipment companies will be reporting earnings in the next few days. ASML reports tonight overnight from Europe. So, we'll have numbers when we get in tomorrow. Lamb reports after the close tomorrow. KLA reports on Thursday night. Applied materials we don't hear from until midFebruary.
But while I expect all these companies to report great numbers, the bar is now incredibly high given how much their stocks have run. So I can't say for sure how their stocks will react as they are what I say coming in hot. That brings me to a very smart analyst note from Lynx equity strategist that came into my inbox.
It was published this morning. The links analyst says that a beat and raise result is already baked into Lamb Research stock. I agree with that. It's hard to argue with but the analyst is still very bullish on Lamb and that's because they expect much better numbers in 2027 than the rest of Wall Street's looking for.
I agree with that. If management gives a qualifi qualitative view of wafer fab equipment into 2027 and we hope that not everybody is starting to build build out at once. The links analyst argues that the stock could sore. Otherwise, he expects it to sell off because it's up 39% over the past few weeks.
If Lamb Research does sell off though, that may be the real opportunity. I would be a buyer. I believe in this group long term and Lamb is my personal favorite. It's incredibly wellrun and it's Anacey Novellis. If anyone who watched the show all the way back in 20 2005 to 2012, was my favorite semicap equipment company of all time.
Here's the bottom line. If you want to play the memory and data storage without chasing stocks that have tripled or quadrupled in barely more than a year, I think the semiconductor capital equipment makers will be more durable winners here. I think Wall Street might not fully appreciate the long-term capacity expansions coming through the entire semiconductor ecosystem.
While I don't know how these companies will do when most of them report this week, that doesn't interest me. I hope the stocks pull back because then you've got my blessing to buy them for the long haul, which is what we care about on Mad Money. Mad Money's back at break. Coming up, gold and silver have soared to record highs, but could the metals market be heading for a meltdown because of it? Kramer is going off the charts to find out nex .
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