Lam Research (NASDAQ:LRCX) Stock Price Down 3.3% - What's Next?

Key Points

• Lam Research shares fell 3.3% to $277.46 on heavier-than-average volume and were on track for a ninth consecutive decline, the company’s longest losing streak since 1984.
• Despite the weakness, analysts remain bullish: the consensus rating is “Moderate Buy,” with an average price target of $364.59, implying roughly 31% upside from the latest price.
• October 21 earnings are the next major catalyst. Investors will focus on demand, guidance and AI-related semiconductor equipment spending, while Lam’s integration of NVIDIA’s NanoVDB library could support longer-term AI-driven chip manufacturing demand.

Shares of Lam Research Corporation (NASDAQ:LRCX - Get Free Report) were down 3.3% during trading on Thursday. The company traded as low as $266.12 and last traded at $277.46. Approximately 13,294,979 shares traded hands during trading, an increase of 25% from the average daily volume of 10,672,452 shares. The stock had previously closed at $286.92.

Key Stories Impacting Lam Research

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

• Positive Sentiment: Analysts remain optimistic about Lam Research’s valuation. Benzinga’s 22 analysts see an average price target of $346, implying roughly 26% upside, while broader Wall Street consensus points to approximately 25.6% potential upside. Lam Research Stock Hits Longest Losing Streak Ever: Are There Buyers Around?
• Positive Sentiment: Lam Research is integrating NVIDIA’s NanoVDB library into its SEMulator3D platform to accelerate GPU-based wafer-etch modeling. The collaboration could support AI-driven chip design, advanced semiconductor manufacturing and future demand for process-control tools. Lam Research Ties AI Fab Push to Faster SEMulator3D Modeling
• Positive Sentiment: Twenty-four exchange-traded funds added to their Lam Research holdings on October 13, indicating continued institutional or passive-investment demand despite the recent weakness. 24 ETFs Add Lam Research Holdings
• Neutral Sentiment: Lam Research is scheduled to report quarterly results on October 21. The upcoming report is likely to be the next major catalyst, with investors watching demand trends, guidance and the outlook for AI-related semiconductor equipment spending. Lam Research Stock Ahead of October 21 Results
• Negative Sentiment: Lam Research is on track for a ninth consecutive declining session, which would be its longest losing streak since 1984. The persistent selling suggests weak near-term sentiment and raises concern that investors are reducing exposure ahead of earnings. Lam Research Stock Hits Longest Losing Streak Ever
• Negative Sentiment: The stock recently underperformed the broader market, adding to technical pressure. Investors may be taking profits or awaiting confirmation from the October 21 earnings release before buying aggressively. Lam Research Dips More Than Broader Market

Analyst Upgrades and Downgrades

Several research analysts have issued reports on LRCX shares. B. Riley Financial boosted their target price on Lam Research from $350.00 to $390.00 and gave the company a "buy" rating in a research report on Thursday, October 1st. Morgan Stanley reissued an "overweight" rating and set a $385.00 price target (up from $367.00) on shares of Lam Research in a research note on Monday, October 5th. Fundamental Research set a $390.00 price target on Lam Research in a research note on Thursday, October 1st. Bank of America boosted their price objective on Lam Research from $330.00 to $480.00 and gave the company a "buy" rating in a report on Tuesday, June 23rd. Finally, Stifel Nicolaus upped their price objective on Lam Research from $325.00 to $425.00 and gave the company a "buy" rating in a research report on Friday, July 10th. One analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $364.59.

Lam Research Stock Performance

The business has a 50-day moving average price of $310.54 and a 200-day moving average price of $307.88. The firm has a market capitalization of $347.22 billion, a price-to-earnings ratio of 48.17, a P/E/G ratio of 1.19 and a beta of 1.85. The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.30.

Lam Research (NASDAQ:LRCX - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 EPS for the quarter, beating the consensus estimate of $1.69 by $0.13. Lam Research had a return on equity of 67.60% and a net margin of 31.27%. The firm had revenue of $6.72 billion during the quarter, compared to analyst estimates of $6.66 billion. During the same quarter in the prior year, the business posted $1.33 EPS. The business's revenue for the quarter was up 30.0% compared to the same quarter last year. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, sell-side analysts forecast that Lam Research Corporation will post 9.34 earnings per share for the current year.

Lam Research Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, October 14th. Investors of record on Wednesday, September 23rd were paid a $0.33 dividend. This is a boost from Lam Research's previous quarterly dividend of $0.26. The ex-dividend date was Wednesday, September 23rd. This represents a $1.32 dividend on an annualized basis and a yield of 0.5%. Lam Research's dividend payout ratio (DPR) is 22.92%.

Insider Buying and Selling at Lam Research

In related news, insider Ava Harter sold 5,000 shares of the business's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $302.46, for a total transaction of $1,512,300.00. Following the completion of the transaction, the insider directly owned 42,462 shares in the company, valued at $12,843,056.52. The trade was a 10.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 9,557 shares of the company's stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $314.74, for a total transaction of $3,007,970.18. Following the completion of the sale, the director directly owned 20,995 shares in the company, valued at approximately $6,607,966.30. The trade was a 31.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.31% of the company's stock.

Institutional Trading of Lam Research

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Van ECK Associates Corp grew its position in Lam Research by 411.8% in the 2nd quarter. Van ECK Associates Corp now owns 11,089,395 shares of the semiconductor company's stock valued at $4,805,368,000 after buying an additional 8,922,854 shares during the last quarter. Bank of New York Mellon Corp purchased a new position in Lam Research during the 2nd quarter worth $3,777,585,000. Corient Private Wealth LLC raised its position in Lam Research by 235.5% during the 4th quarter. Corient Private Wealth LLC now owns 5,199,441 shares of the semiconductor company's stock worth $890,040,000 after buying an additional 3,649,553 shares during the last quarter. J. Stern & Co. LLP raised its position in Lam Research by 3,826.9% during the 4th quarter. J. Stern & Co. LLP now owns 3,459,377 shares of the semiconductor company's stock worth $592,176,000 after buying an additional 3,371,283 shares during the last quarter. Finally, Jennison Associates LLC lifted its stake in shares of Lam Research by 296.9% in the 1st quarter. Jennison Associates LLC now owns 3,373,306 shares of the semiconductor company's stock worth $720,740,000 after acquiring an additional 2,523,351 shares during the period. 84.61% of the stock is owned by institutional investors and hedge funds.

About Lam Research

Lam Research Corporation is a semiconductor equipment company that designs, manufactures, and services systems used in the fabrication of integrated circuits and other electronic devices. Its equipment supports key steps in the wafer manufacturing process, helping semiconductor producers create increasingly small and complex features on silicon wafers.

The company's portfolio includes systems for etch, deposition, wafer cleaning, surface preparation, and related manufacturing processes.

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