Lam Research (NASDAQ:LRCX) Stock Price Down 7.5% - What's Next?

Key Points

• Lam Research shares fell 7.5% to $269.61 during mid-day trading, with volume roughly 41% above the daily average. The decline came amid broader weakness in chip stocks and caution ahead of earnings.
• Lam Research is scheduled to report fiscal fourth-quarter 2026 results after the market closes on July 29. Investors will focus on revenue, margins, guidance and demand tied to AI, memory and foundry equipment.
• The longer-term outlook remains broadly positive: the company recently exceeded earnings estimates, while analysts maintain a “Moderate Buy” consensus with an average price target of $363.37.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report)'s stock price dropped 7.5% during mid-day trading on Tuesday . The company traded as low as $258.53 and last traded at $269.61. Approximately 15,986,599 shares traded hands during mid-day trading, an increase of 41% from the average daily volume of 11,309,119 shares. The stock had previously closed at $291.61.

More Lam Research News

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

• Positive Sentiment: Investor letters from Carillon Tower Advisers and Columbia Threadneedle highlighted Lam Research’s exposure to robust semiconductor capital spending, AI data-center construction and memory investment. These trends support demand for Lam’s wafer-fabrication equipment. Lam Research Corporation Rose on Strong Semiconductor Capital Spending
• Positive Sentiment: Lam Research enters the earnings event after reporting fiscal third-quarter revenue of $5.84 billion and record non-GAAP EPS of $1.47, which exceeded estimates by 8.1%. The prior outperformance and AI-driven demand are supporting the bullish case for the stock. Dear Lam Research Stock Fans, Mark Your Calendars for July 29
• Neutral Sentiment: Lam Research is scheduled to report fiscal fourth-quarter 2026 results after the market closes on July 29. Investors will focus on revenue, margins, earnings guidance and management’s outlook for AI, memory and foundry-related equipment demand. Earnings To Watch: Lam Research Reports Q2 Results Tomorrow
• Negative Sentiment: Chip stocks were among the market’s weakest groups, with Lam Research listed alongside Sandisk and Coherent as major decliners. The sector-wide selling suggests profit-taking and caution ahead of earnings, rather than a company-specific deterioration reported in these articles. Most Stocks Are Higher Despite the S&P 500's Reversal

Analyst Upgrades and Downgrades

Several research firms have weighed in on LRCX. Barclays restated an "overweight" rating and set a $335.00 target price (up from $275.00) on shares of Lam Research in a research note on Thursday, June 11th. Berenberg Bank boosted their price target on Lam Research from $265.00 to $335.00 and gave the stock a "buy" rating in a report on Thursday, April 23rd. Royal Bank Of Canada increased their target price on shares of Lam Research from $290.00 to $310.00 and gave the stock an "outperform" rating in a report on Thursday, April 23rd. BNP Paribas Exane raised their price objective on Lam Research from $250.00 to $260.00 and gave the company a "neutral" rating in a report on Thursday, April 23rd. Finally, Seaport Research Partners assumed coverage on Lam Research in a research report on Monday, May 4th. They set a "buy" rating and a $300.00 price objective on the stock. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $363.37.

Lam Research Trading Down 7.5%

The firm has a fifty day simple moving average of $342.02 and a 200-day simple moving average of $274.96. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.54 and a quick ratio of 1.77. The firm has a market cap of $337.17 billion, a P/E ratio of 50.87, a price-to-earnings-growth ratio of 1.81 and a beta of 1.80.

Lam Research Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 8th. Investors of record on Wednesday, June 17th were issued a dividend of $0.26 per share. The ex-dividend date was Wednesday, June 17th. This represents a $1.04 annualized dividend and a yield of 0.4%. Lam Research's payout ratio is 19.62%.

Insiders Place Their Bets

In related news, SVP Neil J. Fernandes sold 18,170 shares of Lam Research stock in a transaction on 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 directly owned 66,129 shares in the company, valued at approximately $16,872,153.06. This trade represents a 21.55% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric Brandt sold 54,500 shares of the business's stock in a transaction 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 transaction, the director directly owned 199,205 shares in the company, valued at approximately $69,881,114. This represents a 21.48% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 98,611 shares of company stock valued at $32,250,190 in the last 90 days. 0.31% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lam Research

A number of hedge funds have recently made changes to their positions in the business. State Street Corp boosted its stake in Lam Research by 0.4% in the third quarter. State Street Corp now owns 59,817,352 shares of the semiconductor company's stock valued at $8,024,684,000 after acquiring an additional 265,805 shares during the last quarter. Geode Capital Management LLC lifted its stake in Lam Research by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 33,747,368 shares of the semiconductor company's stock valued at $5,764,117,000 after purchasing an additional 126,613 shares during the last quarter. Invesco Ltd. lifted its stake in Lam Research by 7.7% in the fourth quarter. Invesco Ltd. now owns 22,821,354 shares of the semiconductor company's stock valued at $3,906,559,000 after purchasing an additional 1,638,406 shares during the last quarter. Norges Bank bought a new position in Lam Research during the fourth quarter valued at $3,645,427,000. Finally, Price T Rowe Associates Inc. MD increased its position in Lam Research by 352.2% in the fourth 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 last quarter. 84.61% of the stock is currently owned by institutional investors.

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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