Lam Research (NASDAQ:LRCX) Shares Gap Up - Still a Buy?

Key Points

• Lam Research shares gapped up before the open, opening at $328.13 after closing at $306.76, though they later traded around $315. The move comes amid elevated volume and a volatile session for the stock.
• The article highlights a generally bullish analyst and industry backdrop: Lam Research has a consensus “Moderate Buy” rating, an average target price of $360.51, and multiple firms recently raised price targets or upgraded the stock. It is also being cited as a beneficiary of AI-driven semiconductor demand.
• Recent fundamentals remain solid, with Lam Research reporting better-than-expected earnings and revenue in its last quarter and maintaining strong profitability metrics. However, the piece also notes near-term risks from a semiconductor bear market, broader tech weakness, and insider selling.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report)'s share price gapped up before the market opened on Tuesday . The stock had previously closed at $306.76, but opened at $328.13. Lam Research shares last traded at $314.9960, with a volume of 1,456,615 shares changing hands.

More Lam Research News

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

• Positive Sentiment: Lam Research was named as a beneficiary of AI-driven chip demand, with Zacks highlighting the semiconductor industry’s growth from advanced packaging and memory demand. Zacks Industry Outlook Highlights Applied Materials, Lam Research and FormFactor
• Positive Sentiment: The company joined the AI Materials Foundry as a founding partner, a collaboration aimed at accelerating advanced materials discovery for semiconductors using AI, which could strengthen its position in next-generation chip development. Lam Research (LRCX) Joins AI Materials Foundry To Help Shape Future Chip Materials
• Positive Sentiment: Lam Research was included on Oppenheimer’s “best of the best” momentum list, suggesting institutional confidence in the stock’s relative strength. Oppenheimer’s ‘best of the best’ momentum list: NVDA, LRCX and more
• Positive Sentiment: Brokerage coverage continues to lean constructive, with Lam Research carrying a consensus “Moderate Buy” rating. Lam Research Corporation Given Consensus Recommendation of "Moderate Buy" by Brokerages
• Positive Sentiment: Several Zacks screens identified Lam Research as a possible earnings-surprise candidate this season, which can support the stock if results beat expectations. 4 Top-Ranked Tech Stocks Set to Beat Expectations This Earnings Season
• Neutral Sentiment: Lam Research was also mentioned in a Zacks industry outlook as one of several semiconductor names benefiting from AI demand, reinforcing the bullish industry backdrop. 3 Stocks to Buy From the Prospering Semiconductor Industry
• Negative Sentiment: The stock recently fell more than the broader market in the latest session, reflecting near-term pressure on shares. Lam Research (LRCX) Dips More Than Broader Market: What You Should Know
• Negative Sentiment: Semiconductor stocks have entered a bear market, raising concerns that the AI-led rally may be losing momentum and pressuring LRCX along with the rest of the group. Semiconductor stocks enter bear market: Is bubble burst next?
• Negative Sentiment: A broader tech selloff has also increased skepticism around AI spending, which may weigh on semiconductor equipment stocks like Lam Research. Big Tech Needs to Justify AI Spending as Investors Dump Stocks

Wall Street Analyst Weigh In

Several equities analysts have commented on LRCX shares. Zacks Research upgraded shares of Lam Research from a "hold" rating to a "strong-buy" rating in a report on Friday. Sanford C. Bernstein lifted their target price on shares of Lam Research from $325.00 to $340.00 and gave the stock an "outperform" rating in a report on Thursday, May 21st. Needham & Company LLC upped their price target on shares of Lam Research from $300.00 to $390.00 and gave the company a "buy" rating in a research note on Friday, July 10th. BNP Paribas Exane increased their price target on shares of Lam Research from $250.00 to $260.00 and gave the company a "neutral" rating in a report on Thursday, April 23rd. Finally, Royal Bank Of Canada raised their price objective on shares of Lam Research from $290.00 to $310.00 and gave the stock an "outperform" rating in a research report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat, Lam Research has a consensus rating of "Moderate Buy" and an average target price of $360.51.

Lam Research Stock Up 4.6%

The company has a current ratio of 2.54, a quick ratio of 1.77 and a debt-to-equity ratio of 0.35. The stock has a market cap of $401.10 billion, a P/E ratio of 60.59, a PEG ratio of 1.86 and a beta of 1.80. The firm has a 50-day simple moving average of $339.79 and a two-hundred day simple moving average of $270.54.

Lam Research (NASDAQ:LRCX - Get Free Report) last announced its earnings results 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. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The company had revenue of $5.84 billion during the quarter, compared to analysts' expectations of $5.70 billion. During the same quarter in the previous year, the business posted $1.04 earnings per share. Lam Research's quarterly revenue was up 23.8% on a year-over-year basis. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. Equities research analysts expect that Lam Research Corporation will post 5.68 earnings per share 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 given a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date was Wednesday, June 17th. Lam Research's dividend payout ratio is presently 19.62%.

Insider Buying and Selling at Lam Research

In related news, Director Eric Brandt sold 54,500 shares of the business's stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $350.80, for a total value of $19,118,600.00. Following the completion of the sale, the director directly owned 199,205 shares in the company, valued at approximately $69,881,114. The trade was a 21.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, 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 that occurred on Friday, May 1st. The stock was sold at an average price of $255.14, for a total value of $4,635,893.80. Following the sale, 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 104,621 shares of company stock worth $33,804,737. 0.31% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Lam Research

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. PMV Capital Advisers LLC acquired a new position in Lam Research in the fourth quarter valued at about $25,000. Bayban acquired a new stake in Lam Research during the fourth quarter worth about $26,000. Vermillion Wealth Management Inc. acquired a new stake in Lam Research during the first quarter worth about $26,000. Cedar Mountain Advisors LLC increased its holdings in Lam Research by 242.9% in the 1st quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company's stock valued at $26,000 after buying an additional 85 shares during the period. Finally, Triumph Capital Management bought a new position in Lam Research in the 3rd quarter valued at about $27,000. 84.61% of the stock is owned by institutional investors and hedge funds.

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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