QRG Capital Management Inc. Grows Position in Lam Research Corporation $LRCX

Key Points

• QRG Capital Management increased its Lam Research position by 6.6% in the second quarter to 278,844 shares valued at approximately $120.8 million. Institutional investors collectively own 84.61% of LRCX.
• Lam Research exceeded quarterly expectations with $1.82 in EPS and $6.72 billion in revenue, while revenue rose 30% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $358.47.
• The company plans to invest more than $3 billion in global R&D expansion, potentially supporting future demand for equipment used in advanced chips and AI applications. However, valuation and cycle risks remain as some investors warn semiconductor demand could be nearing a peak.

QRG Capital Management Inc. lifted its position in shares of Lam Research Corporation (NASDAQ:LRCX - Free Report) by 6.6% during the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 278,844 shares of the semiconductor company's stock after purchasing an additional 17,328 shares during the quarter. Lam Research comprises 1.0% of QRG Capital Management Inc.'s investment portfolio, making the stock its 16th biggest holding. QRG Capital Management Inc.'s holdings in Lam Research were worth $120,832,000 at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. Norges Bank bought a new position in Lam Research in the fourth quarter worth $3,645,427,000. Price T Rowe Associates Inc. MD boosted its holdings in shares of Lam Research by 352.2% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 13,695,210 shares of the semiconductor company's stock valued at $2,344,347,000 after buying an additional 10,666,540 shares in the last quarter. Franklin Resources Inc. boosted its holdings in shares of Lam Research by 57.0% during the 4th quarter. Franklin Resources Inc. now owns 10,110,560 shares of the semiconductor company's stock valued at $1,730,724,000 after buying an additional 3,671,073 shares in the last quarter. Corient Private Wealth LLC grew its position in shares of Lam Research by 235.5% in the 4th quarter. Corient Private Wealth LLC now owns 5,199,441 shares of the semiconductor company's stock worth $890,040,000 after buying an additional 3,649,553 shares during the period. Finally, J. Stern & Co. LLP increased its stake in shares of Lam Research by 3,826.9% in the 4th quarter. J. Stern & Co. LLP now owns 3,459,377 shares of the semiconductor company's stock worth $592,176,000 after acquiring an additional 3,371,283 shares in the last quarter. 84.61% of the stock is currently owned by institutional investors.

Lam Research Stock Up 3.3%

Shares of Lam Research stock opened at $337.01 on Friday. The company has a 50-day simple moving average of $338.88 and a two-hundred day simple moving average of $282.80. The stock has a market capitalization of $421.71 billion, a PE ratio of 58.51, a price-to-earnings-growth ratio of 1.29 and a beta of 1.84. Lam Research Corporation has a 52-week low of $94.11 and a 52-week high of $438.50. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.91 and a current ratio of 2.63.

Lam Research (NASDAQ:LRCX - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 EPS for the quarter, beating analysts' consensus estimates of $1.69 by $0.13. The firm had revenue of $6.72 billion for the quarter, compared to analysts' expectations of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The business's revenue for the quarter was up 30.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.33 earnings per share. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. On average, analysts anticipate that Lam Research Corporation will post 9.32 EPS for the current fiscal year.

Lam Research Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 8th. Shareholders of record on Wednesday, June 17th were paid a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a yield of 0.3%. The ex-dividend date was Wednesday, June 17th. Lam Research's dividend payout ratio (DPR) is currently 18.06%.

Key Headlines Impacting Lam Research

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

• Positive Sentiment: Lam Research plans to invest more than $3 billion over the next five years to expand its global research and development laboratory network. The expansion is expected to increase experiment capacity by more than 50%, potentially accelerating new equipment development for advanced chip architectures, materials and AI-related applications. Chip equipment maker Lam Research to invest more than $3 billion to expand R&D labs
• Positive Sentiment: Semiconductor equipment stocks, including LRCX, benefited from SanDisk’s bullish multiyear financial targets. The outlook raised expectations for stronger memory-industry capital spending through 2030, which could support demand for Lam’s deposition and etch equipment. Lam Research, Applied Materials, and Camtek Rise After SanDisk Issues Bullish Financial Targets
• Positive Sentiment: Analysts continued to maintain Buy ratings, while Erste Group Bank expects increased earnings for Lam Research. The company’s most recent quarterly results also exceeded expectations, with revenue up 30% year over year and earnings above consensus, reinforcing the favorable earnings outlook.
• Positive Sentiment: Lam Research also announced a workforce-development partnership with NY Creates that could train approximately 3,500 semiconductor students over five years. Although not an immediate revenue driver, the initiative may help address industry talent shortages and support future growth. Lam Research and NY Creates Team Up to Enable Training of University Students for the Semiconductor Workforce
• Neutral Sentiment: Investors continue directing substantial funds into semiconductor ETFs, supporting sector momentum and demand for chip-equipment shares. However, the strong flows also indicate a crowded, momentum-driven trade.
• Negative Sentiment: Fidelity’s Jurrien Timmer warned that the semiconductor cycle could be nearing a peak. That caution presents a risk to Lam’s valuation and future equipment demand if AI-related and memory capital spending slows.

Insiders Place Their Bets

In other Lam Research news, SVP Neil J. Fernandes sold 7,659 shares of Lam Research stock in a transaction on Monday, June 1st. The stock was sold at an average price of $309.60, for a total value of $2,371,226.40. Following the completion of the sale, the senior vice president owned 58,470 shares of the company's stock, valued at approximately $18,102,312. This trade represents a 11.58% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Abhijit Y. Talwalkar sold 18,282 shares of the company's stock in a transaction on Monday, July 13th. The shares were sold at an average price of $335.00, for a total value of $6,124,470.00. Following the transaction, the director directly owned 87,142 shares in the company, valued at approximately $29,192,570. The trade was a 17.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 80,441 shares of company stock valued at $27,614,296. Corporate insiders own 0.31% of the company's stock.

Analysts Set New Price Targets

A number of brokerages recently issued reports on LRCX. Stifel Nicolaus lifted their price target on shares of Lam Research from $325.00 to $425.00 and gave the company a "buy" rating in a research report on Friday, July 10th. B. Riley Financial cut their price objective on shares of Lam Research from $385.00 to $350.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Jefferies Financial Group set a $335.00 target price on shares of Lam Research and gave the company a "buy" rating in a research note on Thursday, July 30th. Oppenheimer reissued an "outperform" rating and issued a $400.00 price target (up from $330.00) on shares of Lam Research in a research report on Monday, June 15th. Finally, Needham & Company LLC reiterated a "buy" rating and set a $390.00 price objective on shares of Lam Research in a research note on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, Lam Research currently has an average rating of "Moderate Buy" and an average target price of $358.47.

Lam Research Profile

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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