Lam Research (NASDAQ:LRCX) Given "Buy" Rating at Needham & Company LLC

Key Points

• Needham reissued a “Buy” rating on Lam Research and set a $390 price target, implying 54.55% upside from the prior close. The broader analyst consensus is “Moderate Buy,” with an average target of $364.04.
• Lam Research exceeded quarterly expectations, reporting $6.72 billion in revenue and $1.82 in adjusted EPS, while revenue rose 30% year over year. Its fiscal Q1 2027 guidance of $2.00–$2.30 EPS also topped consensus estimates, supported by AI-related semiconductor equipment demand.
• Despite strong fundamentals and institutional ownership of 84.61%, investors face valuation and execution risks, along with potential volatility from China-related demand, geopolitics, macroeconomic conditions and semiconductor spending cycles.

Lam Research (NASDAQ:LRCX - Get Free Report)'s stock had its "buy" rating reissued by research analysts at Needham & Company LLC in a research report issued to clients and investors on Thursday,Benzinga reports. They presently have a $390.00 price target on the semiconductor company's stock. Needham & Company LLC's price objective would indicate a potential upside of 54.55% from the stock's previous close.

Other research analysts also recently issued reports about the stock. The Goldman Sachs Group reaffirmed a "buy" rating and set a $290.00 price objective on shares of Lam Research in a research report on Thursday, April 23rd. HSBC restated a "hold" rating and issued a $333.00 target price on shares of Lam Research in a research note on Monday. Berenberg Bank boosted their price target on Lam Research from $265.00 to $335.00 and gave the company a "buy" rating in a research note on Thursday, April 23rd. Deutsche Bank Aktiengesellschaft increased their price target on shares of Lam Research from $300.00 to $325.00 and gave the stock a "buy" rating in a research note on Thursday, April 23rd. Finally, Wells Fargo & Company reaffirmed an "overweight" rating on shares of Lam Research in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $364.04.

Lam Research Price Performance

Shares of NASDAQ:LRCX opened at $252.35 on Thursday. The company's fifty day moving average is $341.14 and its two-hundred day moving average is $275.79. The company has a market cap of $315.58 billion, a P/E ratio of 47.61, a price-to-earnings-growth ratio of 1.60 and a beta of 1.80. Lam Research has a 12-month low of $90.93 and a 12-month high of $438.50. 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 issued its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share for the quarter, beating analysts' consensus estimates of $1.69 by $0.13. The business had revenue of $6.72 billion for the quarter, compared to the consensus estimate of $6.66 billion. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.Lam Research's revenue for the quarter was up 30.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.33 earnings per share. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. Equities analysts expect that Lam Research will post 5.68 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Abhijit Y. Talwalkar sold 18,282 shares of the business'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 sale, the director owned 87,142 shares in the company, valued at approximately $29,192,570. The trade was a 17.34% decrease in their position. The sale 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, SVP Neil J. Fernandes sold 18,170 shares of the stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $255.14, for a total transaction of $4,635,893.80. Following the sale, the senior vice president owned 66,129 shares of the company's stock, valued at $16,872,153.06. This trade represents a 21.55% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 98,611 shares of company stock worth $32,250,190 over the last three months. 0.31% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Lam Research

A number of large investors have recently modified their holdings of the stock. State Street Corp raised its position in shares of Lam Research by 0.4% during the third 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 during 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 during the period. Invesco Ltd. boosted its position in shares of Lam Research by 7.7% in the 4th quarter. Invesco Ltd. now owns 22,821,354 shares of the semiconductor company's stock worth $3,906,559,000 after purchasing an additional 1,638,406 shares during the last quarter. Norges Bank bought a new stake in Lam Research in the fourth quarter valued at about $3,645,427,000. Finally, Price T Rowe Associates Inc. MD grew its position 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 worth $2,344,347,000 after buying an additional 10,666,540 shares during the period. 84.61% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Lam Research

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

• Positive Sentiment: Quarterly results exceeded expectations. Lam Research reported $6.72 billion in revenue for the quarter ended June 28, up 30% year over year and above the $6.66 billion consensus estimate. Non-GAAP earnings were $1.82 per share, beating expectations of $1.69 and rising from $1.33 a year earlier. Reuters article
• Positive Sentiment: Outlook was the key catalyst. Lam guided for fiscal first-quarter 2027 revenue of approximately $7.7 billion to $8.5 billion and EPS of $2.00 to $2.30. The midpoint of the revenue range is well above the roughly $7.0 billion analyst estimate, while the EPS midpoint also exceeds the $1.81 consensus. Lam Research financial results
• Positive Sentiment: AI infrastructure spending is supporting demand. Management and analysts highlighted robust orders for semiconductor manufacturing equipment as customers expand advanced-chip and memory capacity for artificial-intelligence data centers. The company’s record quarterly revenue and raised outlook suggest that AI-related capital spending is translating into near-term sales. Lam Research AI demand article
• Neutral Sentiment: Investors remain focused on execution and valuation. LRCX has strong profitability, including a reported 30.94% net margin and 66.21% return on equity, but its elevated valuation and high beta leave the stock sensitive to changes in semiconductor spending expectations.
• Negative Sentiment: China and macroeconomic risks remain overhangs. Recent concerns about China’s developing lithography capabilities, potential changes in China-related equipment demand, tighter Federal Reserve expectations, geopolitical tensions and a broader semiconductor pullback could create volatility despite the favorable earnings report. China lithography and semiconductor sentiment article

Lam Research Company 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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