Lam Research (NASDAQ:LRCX) Trading Down 2.4% – Time to Sell?

by · The Cerbat Gem

Shares of Lam Research Corporation (NASDAQ:LRCX – Get Free Report) were down 2.4% on Monday . The company traded as low as $273.08 and last traded at $277.96. Approximately 8,529,249 shares were traded during trading, a decline of 22% from the average daily volume of 11,005,409 shares. The stock had previously closed at $284.72.

Lam Research News Summary

Here are the key news stories impacting Lam Research this week:

  • Positive Sentiment: Lam Research opened a research lab in Salzburg, Austria, to advance chip-packaging technology that can increase chip density and cut costs, reinforcing its role in AI infrastructure spending. Reuters: Lam Research opens Austria lab to advance chip packaging, cut costs
  • Positive Sentiment: Morgan Stanley upgraded LRCX to Overweight after raising its wafer fabrication equipment outlook, signaling stronger demand across the semiconductor equipment cycle. Barchart: LRCX Overweight
  • Positive Sentiment: Lam Research raised its wafer-fab equipment outlook amid AI demand, with commentary pointing to record quarterly revenue and EPS and continued strength in etch, deposition, and memory-related spending. Zacks: LRCX Ups WFE View Amid AI Demand
  • Positive Sentiment: Bernstein lifted price targets on LRCX after increasing global wafer fabrication equipment spending forecasts, citing better memory expansion prospects in China and beyond. Yahoo Finance/Investing.com: Bernstein lifts price targets on LRCX
  • Neutral Sentiment: Commentary comparing Lam Research with Applied Materials suggests investors still see LRCX as a major AI-chip beneficiary, but valuation and product breadth remain a competitive debate. Zacks: Lam Research vs. Applied Materials
  • Neutral Sentiment: Broader coverage on semiconductor equipment and memory-chip spending highlights a favorable industry backdrop for LRCX, though these stories are more thematic than company-specific. 24/7 Wall St.: semiconductor equipment trade

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on LRCX shares. Evercore lifted their price target on shares of Lam Research from $275.00 to $300.00 and gave the company an “outperform” rating in a research report on Thursday, April 23rd. Barclays set a $275.00 price target on shares of Lam Research and gave the company an “equal weight” rating in a research report on Thursday, April 23rd. Jefferies Financial Group lifted their price target on shares of Lam Research from $285.00 to $315.00 and gave the company a “buy” rating in a research report on Thursday, April 23rd. Wells Fargo & Company lifted their price target on shares of Lam Research from $290.00 to $320.00 and gave the company an “overweight” rating in a research report on Thursday, April 23rd. Finally, Berenberg Bank lifted their price target on shares of Lam Research from $265.00 to $335.00 and gave the company a “buy” rating in a research report on Thursday, April 23rd. Twenty-seven equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $292.97.

Read Our Latest Stock Analysis on LRCX

Lam Research Price Performance

The company has a market cap of $365.28 billion, a PE ratio of 55.11, a price-to-earnings-growth ratio of 2.30 and a beta of 1.81. The business’s 50 day moving average price is $248.98 and its 200-day moving average price is $212.77. The company has a quick ratio of 1.77, a current ratio of 2.54 and a debt-to-equity ratio of 0.35.

Lam Research (NASDAQ:LRCX – Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.36 by $0.11. The company had revenue of $5.84 billion for the quarter, compared to analyst estimates of $5.70 billion. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The business’s quarterly revenue was up 23.8% on a year-over-year basis. During the same quarter last year, the firm posted $1.04 earnings per share. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. As a group, analysts forecast that Lam Research Corporation will post 5.67 earnings per share for the current year.

Insider Activity

In other Lam Research news, SVP Neil J. Fernandes sold 18,170 shares of the stock in a transaction on Friday, May 1st. The shares were sold at an average price of $255.14, for a total transaction of $4,635,893.80. Following the transaction, the senior vice president directly owned 66,129 shares in the company, valued at $16,872,153.06. This represents a 21.55% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Douglas R. Bettinger sold 50,057 shares of the stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $224.03, for a total transaction of $11,214,269.71. Following the transaction, the chief financial officer owned 1,081,705 shares in the company, valued at $242,334,371.15. This trade represents a 4.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 120,066 shares of company stock worth $27,953,242 over the last 90 days. Company insiders own 0.31% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its holdings in Lam Research by 0.3% during the 3rd quarter. Vanguard Group Inc. now owns 130,974,214 shares of the semiconductor company’s stock worth $17,537,447,000 after acquiring an additional 364,949 shares in the last quarter. State Street Corp grew its holdings in Lam Research by 0.4% during the 3rd quarter. State Street Corp now owns 59,817,352 shares of the semiconductor company’s stock worth $8,024,684,000 after acquiring an additional 265,805 shares in the last quarter. Geode Capital Management LLC grew its holdings in Lam Research by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 33,747,368 shares of the semiconductor company’s stock worth $5,764,117,000 after acquiring an additional 126,613 shares in the last quarter. Invesco Ltd. grew its holdings in Lam Research by 7.7% during the 4th quarter. Invesco Ltd. now owns 22,821,354 shares of the semiconductor company’s stock worth $3,906,559,000 after acquiring an additional 1,638,406 shares in the last quarter. Finally, Norges Bank acquired a new position in Lam Research during the 4th quarter worth $3,645,427,000. 84.61% of the stock is owned by institutional investors and hedge funds.

Lam Research Company Profile

(Get Free Report)

Lam Research Corporation (NASDAQ: LRCX) is a global supplier of wafer fabrication equipment and services to the semiconductor industry. Founded in 1980 by David K. Lam and headquartered in Fremont, California, the company develops and manufactures systems used in multiple stages of semiconductor device production, including thin film deposition, plasma etch, wafer cleaning and related process modules and automation.

Lam’s product portfolio covers core process technologies employed by logic and memory manufacturers, with equipment designed to support advanced-node patterning, 3D NAND and other emerging device architectures.

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