Most of the semiconductor industry is in a deep slump (with an obvious exception being Nvidia. In fact, the current downturn that cropped up late in 2022 and that seems to finally be finding a bottom is one of the worst ever for the chip industry -- an aftereffect of massive spending on electronics during the pandemic, followed by a steep decline in spending as global supply chains normalized. 

The downturn was especially bad for the sensitive memory chip market. Some investors placed their bets on U.S. memory manufacturing leader Micron Technology (NASDAQ: MU), owing to the growing importance of memory chips in AI applications and funding from the U.S. CHIPS Act. But there's one other top stock that could be an even better investment in a memory rebound: Lam Research (NASDAQ: LRCX). Here's why.

Lam Research provides equipment and process technology for companies that manufacture semiconductors. Historically, Lam has tilted heavily toward the memory chip portion of this market and has done an exceptional job of consistently pulling profit from the most volatile part of the semiconductor industry. Just look at Lam's generally accepted accounting principles (GAAP) net income and free cash flow versus that of a customer like Micron. 

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Source Fool.com