Lam Research (NASDAQ:LRCX) Trading Up 3.6% After Analyst Upgrade

Key Points

• Morgan Stanley raised its price target on Lam Research from $260 to $293 and the stock traded up about 3.6% mid‑day (last ~$267.78) with volume slightly above average.
• Q3 results beat expectations—revenue $5.84B (+23.8% y/y) and EPS $1.47 vs. $1.36 expected—and management guided Q4 EPS to a range of 1.50–1.80, citing continued AI‑driven demand.
• Brokerages have lifted targets (consensus average ~$283.65) creating analyst momentum, but valuation is rich (P/E ~50.5) and notable insider selling (CFO sold 50,057 shares) highlights execution and timing risks.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) shares were up 3.6% during mid-day trading on Friday after Morgan Stanley raised their price target on the stock from $260.00 to $293.00. Morgan Stanley currently has an equal weight rating on the stock. Lam Research traded as high as $275.84 and last traded at $267.78. Approximately 12,031,181 shares were traded during mid-day trading, an increase of 6% from the average daily volume of 11,320,590 shares. The stock had previously closed at $258.56.

LRCX has been the subject of a number of other reports. Argus upped their price objective on Lam Research from $175.00 to $280.00 in a report on Tuesday, February 3rd. Weiss Ratings reissued a "buy (b-)" rating on shares of Lam Research in a research note on Friday, April 10th. B. Riley Financial reissued a "buy" rating on shares of Lam Research in a research note on Monday. Erste Group Bank lowered Lam Research from a "buy" rating to a "hold" rating in a research note on Thursday, April 2nd. Finally, JPMorgan Chase & Co. boosted their target price on Lam Research from $300.00 to $315.00 and gave the company an "overweight" rating in a research note on Thursday. Twenty-six research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $283.65.

Insider Activity

In other Lam Research news, CFO Douglas R. Bettinger sold 50,057 shares of the company's stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $224.03, for a total transaction of $11,214,269.71. Following the completion of the transaction, the chief financial officer owned 1,081,705 shares of the company's stock, valued at $242,334,371.15. This represents a 4.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Ava Harter sold 1,500 shares of the company's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $222.66, for a total value of $333,990.00. Following the transaction, the insider directly owned 53,205 shares of the company's stock, valued at $11,846,625.30. The trade was a 2.74% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 130,886 shares of company stock valued at $29,658,802. Insiders own 0.31% of the company's stock.

More Lam Research News

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

• Positive Sentiment: Q3 results beat expectations and management gave stronger-than-expected Q4 guidance (EPS range 1.50–1.80 and revenue midpoint above consensus), signaling continued AI-driven demand and margin expansion. Lam Research Reports Financial Results (PR Newswire)
• Positive Sentiment: Revenue and EPS were strong (revenue +23.8% y/y; EPS $1.47 vs. $1.36 expected) and management highlighted record support sales and inventory improvement — reinforcing a sustainment of the AI capex cycle. Yahoo: Lam Research Surprises With Q1 Sales
• Positive Sentiment: Major brokerages rushed to lift price targets and ratings (examples: TD Cowen $340, JPMorgan $315, Susquehanna $385, BofA $330, multiple $300+ targets), creating strong analyst momentum that supports further upside. JPMorgan Raises Target to $315 (247WallSt)
• Neutral Sentiment: Broader market action (Nasdaq strength on other chip names and Intel earnings) is supporting cyclical rallies in semiconductor-related stocks, including LRCX. Stock Market Today: Dow Slips, Nasdaq Gains (Yahoo)
• Neutral Sentiment: The earnings-call transcript and analyst notes provide color on market-share gains and multi‑year wafer‑fab equipment (WFE) tailwinds; these help validate the growth thesis but don’t remove execution risk. Earnings Call Transcript (Seeking Alpha)
• Negative Sentiment: Valuation and “crowded” positioning are the main risks cited — commentary questions whether the stock already prices in a multi‑year AI upcycle and warns the rally (~300% one‑year moves in some reports) raises entry risk. Seeking Alpha: AI Upcycle Real But Price Too Expensive
• Negative Sentiment: Several commentators ask whether it’s “too late” to buy after the rapid run-up; investors should weigh high P/E and momentum-driven positioning against durable fundamentals. Is It Too Late To Consider Lam Research? (Yahoo)

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Greenup Street Wealth Management LLC raised its position in Lam Research by 1.8% during the 1st quarter. Greenup Street Wealth Management LLC now owns 2,433 shares of the semiconductor company's stock valued at $520,000 after purchasing an additional 44 shares during the last quarter. Triumph Capital Management raised its position in Lam Research by 22.5% during the 4th quarter. Triumph Capital Management now owns 245 shares of the semiconductor company's stock valued at $42,000 after purchasing an additional 45 shares during the last quarter. Traphagen Investment Advisors LLC raised its position in Lam Research by 2.4% during the 4th quarter. Traphagen Investment Advisors LLC now owns 1,963 shares of the semiconductor company's stock valued at $336,000 after purchasing an additional 46 shares during the last quarter. Bank of Jackson Hole Trust raised its position in Lam Research by 12.6% during the 4th quarter. Bank of Jackson Hole Trust now owns 428 shares of the semiconductor company's stock valued at $73,000 after purchasing an additional 48 shares during the last quarter. Finally, Field & Main Bank raised its position in Lam Research by 1.1% during the 4th quarter. Field & Main Bank now owns 4,615 shares of the semiconductor company's stock valued at $790,000 after purchasing an additional 50 shares during the last quarter. Institutional investors own 84.61% of the company's stock.

Lam Research Price Performance

The business has a 50-day simple moving average of $234.34 and a 200 day simple moving average of $197.02. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.61 and a current ratio of 2.26. The firm has a market cap of $334.40 billion, a P/E ratio of 50.52, a price-to-earnings-growth ratio of 2.83 and a beta of 1.78.

Lam Research (NASDAQ:LRCX - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share for the quarter, topping analysts' consensus estimates of $1.36 by $0.11. Lam Research had a return on equity of 67.07% and a net margin of 30.94%.The firm had revenue of $5.84 billion for the quarter, compared to the consensus estimate of $5.70 billion. During the same quarter in the prior year, the business earned $1.04 EPS. The business's revenue for the quarter was up 23.8% on a year-over-year basis. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. On average, analysts anticipate that Lam Research Corporation will post 5.29 earnings per share for the current fiscal year.

Lam Research Dividend Announcement

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

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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