Lam Research (NASDAQ:LRCX) Stock Price Down 2.7% - Here's What Happened

Key Points

• Shares fell 2.7% Wednesday, trading as low as $255.48 and last at $265.16 on ~11.2M shares, slightly below average volume.
• Earnings beat and strong fundamentals: Lam reported $1.27 EPS vs. $1.17 expected and revenue up 22.1% YoY to $5.34B, while analysts remain largely bullish (27 Buys) and AI-driven capex is supporting order momentum.
• Near-term risks include a sector pullback after ASML commentary, renewed export-control/geopolitical uncertainty around China, recent insider selling, and an upcoming earnings report that could amplify volatility.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report)'s stock price traded down 2.7% on Wednesday . The company traded as low as $255.48 and last traded at $265.16. 11,208,116 shares were traded during trading, a decline of 3% from the average session volume of 11,530,676 shares. The stock had previously closed at $272.41.

More Lam Research News

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

• Positive Sentiment: Analyst upgrades and bullish forecasts are lifting conviction — recent upgrades and a Stifel note forecast strong price appreciation, supporting medium/long-term upside. Read More. Read More.
• Positive Sentiment: AI-driven equipment demand and earnings-beat history underpin optimism: Zacks and Yahoo pieces highlight that Lam has the setup for another upside earnings surprise and that AI-related capex is fueling order momentum. Read More. Read More.
• Positive Sentiment: Social/market momentum: recent chatter and price-target raises (some targets well above current levels) reflect strong investor enthusiasm for Lam’s role in AI and memory cycles. Read More.
• Neutral Sentiment: Mixed institutional flows — big additions from firms like T. Rowe and BlackRock sit alongside large trims from others (e.g., UBS), indicating uneven positioning among large investors. This could amplify swings but also reflect conviction on both sides. Read More.
• Negative Sentiment: Sector sell-off after ASML's update: although ASML lifted its 2026 sales outlook, the market fixated on softer margin commentary and export-control uncertainty — that sentiment spilled over to U.S. equipment names like Lam. Read More.
• Negative Sentiment: Export-control and geopolitical overhang: renewed U.S. policy proposals targeting certain tool exports/servicing in China increase execution risk for equipment vendors with China exposure. Read More.
• Negative Sentiment: Insider selling: multiple recent insider sales (no purchases) may be interpreted as a mild negative signal by some investors looking for insider conviction. Read More.
• Negative Sentiment: Upcoming earnings (April 22) can amplify short-term positioning — traders often de-risk ahead of toolmakers’ guidance, increasing volatility in the run-up to the call. Read More.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the stock. Rothschild & Co Redburn boosted their target price on shares of Lam Research from $225.00 to $265.00 and gave the stock a "buy" rating in a research note on Friday, February 6th. New Street Research raised their price target on shares of Lam Research from $140.00 to $235.00 and gave the company a "neutral" rating in a research note on Tuesday, March 31st. Summit Insights upgraded Lam Research from a "hold" rating to a "buy" rating in a report on Thursday, January 29th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $300.00 price objective on shares of Lam Research in a research note on Wednesday. Finally, Bank of America raised their target price on Lam Research from $195.00 to $245.00 and gave the company a "buy" rating in a research report on Tuesday, January 13th. Twenty-seven research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $247.26.

Lam Research Stock Performance

The company has a current ratio of 2.26, a quick ratio of 1.61 and a debt-to-equity ratio of 0.37. The stock's fifty day simple moving average is $229.09 and its 200 day simple moving average is $191.77. The company has a market cap of $331.12 billion, a price-to-earnings ratio of 54.34, a P/E/G ratio of 2.85 and a beta of 1.78.

Lam Research (NASDAQ:LRCX - Get Free Report) last released its earnings results on Wednesday, January 28th. The semiconductor company reported $1.27 earnings per share for the quarter, topping analysts' consensus estimates of $1.17 by $0.10. The business had revenue of $5.34 billion for the quarter, compared to analyst estimates of $5.23 billion. Lam Research had a net margin of 30.22% and a return on equity of 62.81%. The business's revenue was up 22.1% on a year-over-year basis. During the same period last year, the company posted $0.91 EPS. Lam Research has set its Q3 2026 guidance at 1.250-1.450 EPS. As a group, analysts anticipate that Lam Research Corporation will post 3.71 earnings per share for the current year.

Lam Research Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 8th. Shareholders of record on Wednesday, March 4th were paid a dividend of $0.26 per share. The ex-dividend date of this dividend was Wednesday, March 4th. This represents a $1.04 dividend on an annualized basis and a yield of 0.4%. Lam Research's payout ratio is 21.31%.

Insiders Place Their Bets

In other Lam Research news, insider Ava Harter sold 1,500 shares of the firm's stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $222.66, for a total value of $333,990.00. Following the completion of the sale, the insider directly owned 53,205 shares of the company's stock, valued at $11,846,625.30. This trade represents a 2.74% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Eric Brandt sold 35,000 shares of the business's stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $225.60, for a total transaction of $7,896,000.00. Following the transaction, the director directly owned 253,705 shares in the company, valued at approximately $57,235,848. The trade was a 12.12% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 130,886 shares of company stock valued at $29,658,802 in the last three months. 0.31% of the stock is currently owned by insiders.

Institutional Trading of Lam Research

Several hedge funds have recently made changes to their positions in LRCX. PMV Capital Advisers LLC purchased a new position in Lam Research in the fourth quarter worth approximately $25,000. Bayban purchased a new stake in Lam Research in the fourth quarter valued at $26,000. Mcguire Capital Advisors Inc. purchased a new stake in Lam Research in the fourth quarter valued at $27,000. Core Wealth Advisors LLC acquired a new position in shares of Lam Research in the 4th quarter valued at $29,000. Finally, University of Illinois Foundation acquired a new position in shares of Lam Research in the 4th quarter valued at $30,000. Hedge funds and other institutional investors own 84.61% of the company's stock.

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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