Lam Research (NASDAQ:LRCX) Trading Up 12.7% After Analyst Upgrade

Key Points

• Lam Research shares jumped 12.7% after Barclays raised its price target from $275 to $335, adding to a rally that took the stock to an intraday high of $364.81.
• Brokerage sentiment remains broadly positive, with several firms recently lifting targets and multiple analysts maintaining Buy ratings. Overall, Lam now has 28 Buy ratings and six Hold ratings, with an average price target of $322.01.
• Investor optimism is being supported by strong AI-driven chip equipment spending expectations and solid recent earnings, as Lam beat quarterly EPS and revenue estimates and raised its wafer-fab equipment market outlook.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) shares were up 12.7% during mid-day trading on Thursday after Barclays raised their price target on the stock from $275.00 to $335.00. Barclays currently has an equal weight rating on the stock. Lam Research traded as high as $364.81 and last traded at $362.52. Approximately 14,549,363 shares were traded during mid-day trading, an increase of 34% from the average daily volume of 10,880,257 shares. The stock had previously closed at $321.80.

A number of other analysts have also issued reports on LRCX. Jefferies Financial Group increased their target price on Lam Research from $285.00 to $315.00 and gave the company a "buy" rating in a report on Thursday, April 23rd. Bank of America increased their target price on Lam Research from $285.00 to $330.00 and gave the company a "buy" rating in a report on Thursday, April 23rd. Seaport Research Partners started coverage on Lam Research in a report on Monday, May 4th. They issued a "buy" rating and a $300.00 target price for the company. Needham & Company LLC restated a "buy" rating and issued a $300.00 target price on shares of Lam Research in a report on Thursday, April 23rd. Finally, Morgan Stanley upgraded Lam Research from an "underweight" rating to an "overweight" rating and increased their target price for the company from $293.00 to $331.00 in a report on Monday, May 18th. Twenty-eight equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $322.01.

Insider Buying and Selling at Lam Research

In related news, SVP Neil J. Fernandes sold 7,659 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $309.60, for a total transaction of $2,371,226.40. Following the completion of the sale, the senior vice president directly owned 58,470 shares in the company, valued at approximately $18,102,312. This trade represents a 11.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ava Harter sold 6,010 shares of the stock in a transaction on Monday, April 27th. The stock was sold at an average price of $258.66, for a total value of $1,554,546.60. Following the sale, the insider owned 53,205 shares of the company's stock, valued at approximately $13,762,005.30. This represents a 10.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 31,839 shares of company stock valued at $8,561,667. 0.31% of the stock is owned by corporate insiders.

Key Lam Research News

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

• Positive Sentiment: Barclays raised its wafer-fab equipment outlook and increased price targets across chip-equipment names, including Lam Research, reinforcing the view that AI-related capital spending remains strong. Barclays raises price targets on chip stocks after raising WFE estimates
• Positive Sentiment: UBS also lifted its target on Lam Research, adding to bullish sentiment around the stock and helping extend the rally in semiconductor equipment shares. Lam Research jumps as upbeat chip-equipment spending outlook and fresh analyst target hikes lift sentiment
• Positive Sentiment: Lam’s management recently raised its 2026 wafer-fab equipment market forecast, which suggests the industry spending cycle may be stronger than previously expected. Lam Research jumps as upbeat chip-equipment spending outlook and fresh analyst target hikes lift sentiment
• Positive Sentiment: Recent earnings results were solid, with Lam Research beating EPS and revenue estimates and guiding to stronger next-quarter sales, which supports the bullish AI/infrastructure narrative. Lam Research jumps as upbeat chip-equipment spending outlook and fresh analyst target hikes lift sentiment
• Neutral Sentiment: Analyst and media coverage continues to frame Lam Research as a key beneficiary of AI infrastructure growth and an “unstoppable growth” semiconductor stock, but these items are mostly sentiment boosters rather than new company-specific fundamentals. Lam Research Up 87% YTD: Is the Chipmaking Tool Provider Still a Buy?
• Negative Sentiment: Some recent trading has been volatile, and Lam shares also had a down session in the prior trading day, showing that investors remain sensitive to broader AI-chip swings despite the positive outlook. Lam Research (LRCX) Falls More Steeply Than Broader Market: What Investors Need to Know

Hedge Funds Weigh In On Lam Research

Hedge funds have recently bought and sold shares of the business. PMV Capital Advisers LLC acquired a new position in Lam Research during the fourth quarter worth $25,000. Stance Capital LLC acquired a new position in Lam Research during the third quarter worth $26,000. Bayban acquired a new position in Lam Research during the fourth quarter worth $26,000. Vermillion Wealth Management Inc. acquired a new position in Lam Research during the first quarter worth $26,000. Finally, Cedar Mountain Advisors LLC increased its position in Lam Research by 242.9% during the first quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company's stock worth $26,000 after buying an additional 85 shares during the last quarter. 84.61% of the stock is owned by institutional investors and hedge funds.

Lam Research Price Performance

The company has a quick ratio of 1.77, a current ratio of 2.54 and a debt-to-equity ratio of 0.35. The stock has a market capitalization of $453.36 billion, a price-to-earnings ratio of 68.40, a P/E/G ratio of 2.71 and a beta of 1.85. The company's 50-day simple moving average is $280.23 and its 200 day simple moving average is $231.09.

Lam Research (NASDAQ:LRCX - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 EPS for the quarter, topping the consensus estimate of $1.36 by $0.11. The firm had revenue of $5.84 billion for the quarter, compared to the consensus estimate of $5.70 billion. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The business's quarterly revenue was up 23.8% on a year-over-year basis. During the same period in the prior year, the business posted $1.04 earnings per share. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. Equities research analysts forecast that Lam Research Corporation will post 5.67 EPS for the current year.

Lam Research Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 8th. Stockholders of record on Wednesday, June 17th will be given a $0.26 dividend. This represents a $1.04 annualized dividend and a dividend yield of 0.3%. The ex-dividend date of this dividend is Wednesday, June 17th. Lam Research's dividend payout ratio (DPR) is currently 19.62%.

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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