Lam Research Corporation (NASDAQ:LRCX) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts rate Lam Research “Moderate Buy”: Of 32 analysts, 26 recommend buying, five rate it a hold and one gives a strong-buy rating. The average 12-month price target is $358.47.
• Lam Research reported strong quarterly results, with revenue rising 30% year over year to $6.72 billion and earnings of $1.82 per share, exceeding consensus estimates.
• The company plans to invest more than $3 billion in research and development over five years to expand laboratory capacity, though investors should weigh valuation and the risk that the semiconductor cycle may be nearing a peak.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) has been given an average rating of "Moderate Buy" by the thirty-two ratings firms that are currently covering the company, Marketbeat Ratings reports. Five equities research analysts have rated the stock with a hold rating, twenty-six have given a buy rating and one has assigned a strong buy rating to the company. The average 1 year target price among analysts that have issued ratings on the stock in the last year is $358.4733.

Several research analysts have weighed in on LRCX shares. Zacks Research upgraded shares of Lam Research from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 17th. Evercore reiterated an "outperform" rating and set a $355.00 price target on shares of Lam Research in a research report on Monday, July 20th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $320.00 price target on shares of Lam Research in a report on Thursday, July 30th. Wells Fargo & Company reaffirmed an "overweight" rating and issued a $350.00 price objective (down from $450.00) on shares of Lam Research in a research note on Thursday, July 30th. Finally, Oppenheimer reaffirmed an "outperform" rating and set a $400.00 price objective (up from $330.00) on shares of Lam Research in a report on Monday, June 15th.

Key Stories 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.

Lam Research Trading Up 3.3%

Shares of Lam Research stock opened at $337.01 on Friday. The firm has a market cap of $421.71 billion, a price-to-earnings ratio of 58.51, a price-to-earnings-growth ratio of 1.29 and a beta of 1.84. Lam Research has a 52-week low of $94.11 and a 52-week high of $438.50. The company's 50-day simple moving average is $338.88 and its 200-day simple moving average is $282.80. The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.30.

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

Lam Research Dividend Announcement

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

Insider Transactions at Lam Research

In related news, Director Eric Brandt sold 54,500 shares of the stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $350.80, for a total value of $19,118,600.00. Following the sale, the director directly owned 199,205 shares of the company's stock, valued at approximately $69,881,114. This represents a 21.48% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Abhijit Y. Talwalkar sold 18,282 shares of the firm's stock in a transaction dated Monday, July 13th. The shares were sold at an average price of $335.00, for a total transaction of $6,124,470.00. Following the transaction, the director owned 87,142 shares of the company's stock, valued at $29,192,570. This trade represents 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. Insiders sold 80,441 shares of company stock valued at $27,614,296 in the last 90 days. 0.31% of the stock is currently owned by insiders.

Institutional Trading of Lam Research

Large investors have recently modified their holdings of the business. Fideuram Asset Management Ireland dac acquired a new position in shares of Lam Research during the fourth quarter valued at $10,035,000. Generali Investments Management Co LLC grew its position in shares of Lam Research by 62.0% during the fourth quarter. Generali Investments Management Co LLC now owns 36,274 shares of the semiconductor company's stock worth $6,209,000 after acquiring an additional 13,878 shares during the last quarter. Rokos Capital Management LLP increased its holdings in shares of Lam Research by 42.0% in the 1st quarter. Rokos Capital Management LLP now owns 259,921 shares of the semiconductor company's stock worth $55,532,000 after acquiring an additional 76,840 shares during the period. Aware Super Pty Ltd as trustee of Aware Super acquired a new stake in shares of Lam Research in the 1st quarter worth about $59,973,000. Finally, Y Intercept Hong Kong Ltd bought a new stake in Lam Research in the 1st quarter valued at about $26,489,000. 84.61% of the stock is currently owned by institutional investors and hedge funds.

About Lam Research

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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