Lam Research (NASDAQ:LRCX) Stock Price Down 6.4% - Here's Why

Key Points

• Lam Research shares fell 6.4% to $252.35 amid broader market weakness and investor caution ahead of major technology earnings and Federal Reserve commentary. Trading volume was about 38% above its daily average.
• Despite the decline, AI data-center investment, memory demand and semiconductor capital spending remain key growth drivers for Lam Research’s wafer-fabrication equipment business.
• Analysts maintain a broadly positive outlook, with a consensus “Moderate Buy” rating and average price target of $363.37. The company’s latest quarterly results beat estimates, reporting $1.82 in EPS and $6.72 billion in revenue.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) dropped 6.4% during trading on Wednesday . The company traded as low as $250.50 and last traded at $252.35. 15,663,350 shares traded hands during mid-day trading, an increase of 38% from the average daily volume of 11,355,941 shares. The stock had previously closed at $269.61.

Key Lam Research News

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

• Positive Sentiment: AI and memory demand remain key growth drivers. Recent investor commentary highlighted continued spending on AI data centers, memory and semiconductor capacity—areas that support demand for Lam Research’s wafer-fabrication equipment. Lam Research Rose on AI Data Center and Memory Spending
• Positive Sentiment: Strong semiconductor capital spending has supported the stock. Fund commentary pointed to Lam Research’s exposure to cyclical semiconductor, memory and optical-equipment spending, particularly amid the AI investment boom. Lam Research Corporation Rose on Strong Semiconductor Capital Spending
• Neutral Sentiment: Investors are focused on the fiscal fourth-quarter report due after the market closes on July 29. Lam Research previously reported $5.84 billion in fiscal third-quarter revenue and record non-GAAP earnings per share of $1.47, which exceeded estimates by 8.1%. The new report and management’s outlook will be important tests for the stock’s elevated expectations. Lam Research Earnings Preview
• Negative Sentiment: Broader market weakness is pressuring semiconductor stocks. U.S. equity indexes declined ahead of a Federal Reserve briefing and major technology earnings, while geopolitical concerns involving Iran added to investor caution. This risk-off environment likely contributed to selling in LRCX ahead of its earnings release. US Equity Indexes Slide Ahead of Fed Briefing and Big Tech Results

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the stock. UBS Group reaffirmed a "buy" rating and set a $375.00 price objective (up from $310.00) on shares of Lam Research in a report on Tuesday, June 9th. Bank of America increased their target price on shares of Lam Research from $330.00 to $480.00 and gave the company a "buy" rating in a report on Tuesday, June 23rd. Stifel Nicolaus raised 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. Erste Group Bank cut shares of Lam Research from a "buy" rating to a "hold" rating in a report on Thursday, April 2nd. Finally, Seaport Research Partners started coverage on shares of Lam Research in a report on Monday, May 4th. They set a "buy" rating and a $300.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $363.37.

Lam Research Price Performance

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 business's fifty day moving average is $341.94 and its 200 day moving average is $275.43. The company has a market cap of $315.58 billion, a P/E ratio of 47.61, a PEG ratio of 1.73 and a beta of 1.80.

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, beating the consensus estimate of $1.69 by $0.13. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.The business had revenue of $6.72 billion during the quarter, compared to analyst estimates of $6.66 billion. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, sell-side analysts anticipate that Lam Research Corporation will post 5.68 EPS 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 dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend was Wednesday, June 17th. Lam Research's dividend payout ratio is currently 19.62%.

Insider Transactions at Lam Research

In other news, Director Abhijit Y. Talwalkar sold 18,282 shares of the stock in a transaction on Monday, July 13th. The stock was sold at an average price of $335.00, for a total transaction of $6,124,470.00. Following the completion of the transaction, the director owned 87,142 shares in the company, valued at approximately $29,192,570. This represents a 17.34% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric Brandt sold 54,500 shares of Lam Research stock in a transaction dated 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 of the company's stock, valued at approximately $69,881,114. This trade represents a 21.48% decrease in their position. 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 90 days, insiders sold 98,611 shares of company stock worth $32,250,190. 0.31% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lam Research

Several large investors have recently modified their holdings of the business. Clarus Group Inc. bought a new stake in shares of Lam Research in the second quarter valued at approximately $243,000. Wealth Advisory Solutions LLC bought a new position in Lam Research in the 2nd quarter worth approximately $266,000. Petra Financial Advisors Inc. purchased a new position in Lam Research in the 2nd quarter valued at approximately $463,000. Bogart Wealth LLC raised its holdings in Lam Research by 10.9% during the 2nd quarter. Bogart Wealth LLC now owns 1,807 shares of the semiconductor company's stock valued at $783,000 after acquiring an additional 177 shares during the period. Finally, Stonebridge Financial Group LLC MO purchased a new stake in shares of Lam Research during the second quarter worth $288,000. 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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