Lam Research (NASDAQ:LRCX) Trading Down 5.9% – Here’s Why

Lam Research Corporation (NASDAQ:LRCX)’s stock price was down 5.9% on Friday . The company traded as low as $232.00 and last traded at $233.46. Approximately 18,140,935 shares traded hands during trading, an increase of 28% from the average daily volume of 14,174,858 shares. The stock had previously closed at $248.17.

Lam Research News Summary

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

• Positive Sentiment: Multiple major brokers sharply raised targets (many to $275–$300), signaling broad analyst bullishness after the quarter and suggesting upside versus earlier prices. These Analysts Boost Their Forecasts On Lam Research Following Strong Q2 Results
• Positive Sentiment: JPMorgan and Citigroup raised targets to $300 (overweight/buy), and firms including Needham, TD Cowen, Wells Fargo, Deutsche and Stifel also lifted targets — a strong institutional vote of confidence for continued AI/foundry-driven demand. Analyst target increases (Benzinga)
• Positive Sentiment: Lam beat Q2 estimates (EPS $1.27 vs. $1.17 est.; revenue $5.34B vs. $5.23B) and issued Q3 EPS guidance of $1.25–$1.45 and revenue above consensus — concrete operational drivers behind analyst upgrades. Lam Research Q2 Earnings Surpass Expectations, Revenues Rise Y/Y
• Neutral Sentiment: New Street Research raised its target to $235 but kept a neutral rating, reflecting near-term upside limited relative to recent price strength. New Street adjusts price target on Lam Research to $235
• Negative Sentiment: HSBC raised its target to $221 but maintained a “hold,” which implies downside from recent levels and highlights some analyst caution despite better results. HSBC adjusts price target on Lam Research to $221
• Negative Sentiment: Coverage notes flag valuation concerns after a large run (high P/E and steep analyst target dispersion), which may limit further upside and explains some profit?taking. Lam Research Earnings Beat Highlights AI Demand But Raises Valuation Questions

Analyst Ratings Changes

Several brokerages have recently commented on LRCX. Oppenheimer restated an “outperform” rating and issued a $265.00 target price on shares of Lam Research in a research report on Thursday. B. Riley reiterated a “buy” rating on shares of Lam Research in a research note on Thursday, January 15th. Cantor Fitzgerald restated an “overweight” rating and set a $320.00 price objective (up previously from $265.00) on shares of Lam Research in a research report on Thursday. JPMorgan Chase & Co. increased their target price on Lam Research from $165.00 to $300.00 and gave the company an “overweight” rating in a research report on Thursday. Finally, Needham & Company LLC boosted their price target on Lam Research from $250.00 to $300.00 and gave the stock a “buy” rating in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $238.32.

Lam Research Stock Down 5.9%

The stock’s 50-day moving average price is $185.48 and its 200-day moving average price is $145.09. The company has a current ratio of 2.21, a quick ratio of 1.60 and a debt-to-equity ratio of 0.37. The stock has a market cap of $293.23 billion, a price-to-earnings ratio of 47.84, a P/E/G ratio of 3.03 and a beta of 1.77.

Lam Research (NASDAQ:LRCX) last issued its earnings results on Wednesday, January 28th. The semiconductor company reported $1.27 earnings per share for the quarter, topping analysts’ consensus estimates of $1.17 by $0.10. Lam Research had a return on equity of 63.28% and a net margin of 30.22%.The company had revenue of $5.34 billion for the quarter, compared to analyst estimates of $5.23 billion. During the same period in the prior year, the firm earned $0.91 earnings per share. Lam Research’s revenue for the quarter was up 22.1% on a year-over-year basis. Lam Research has set its Q3 2026 guidance at 1.250-1.450 EPS. On average, sell-side analysts expect that Lam Research Corporation will post 3.71 earnings per share for the current year.

Lam Research Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, January 7th. Shareholders of record on Wednesday, December 3rd were issued a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend was Wednesday, December 3rd. Lam Research’s payout ratio is currently 21.31%.

Insider Activity at Lam Research

In related news, Director Bethany Mayer sold 1,298 shares of the business’s stock in a transaction dated Monday, November 3rd. The stock was sold at an average price of $159.99, for a total value of $207,667.02. Following the sale, the director directly owned 1,652 shares in the company, valued at approximately $264,303.48. The trade was a 44.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Douglas R. Bettinger sold 40,080 shares of the business’s stock in a transaction on Friday, November 14th. The shares were sold at an average price of $150.60, for a total transaction of $6,036,048.00. Following the sale, the chief financial officer directly owned 987,237 shares in the company, valued at $148,677,892.20. The trade was a 3.90% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 41,408 shares of company stock worth $6,248,501. Insiders own 0.31% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. PMV Capital Advisers LLC purchased a new position in shares of Lam Research during the fourth quarter valued at approximately $25,000. IMG Wealth Management Inc. bought a new position in shares of Lam Research in the second quarter worth approximately $26,000. Stance Capital LLC purchased a new stake in Lam Research in the 3rd quarter worth $26,000. Howard Hughes Medical Institute purchased a new stake in shares of Lam Research during the second quarter worth about $27,000. Finally, Triumph Capital Management purchased a new stake in Lam Research during the 3rd quarter valued at approximately $27,000. Institutional investors own 84.61% of the company’s stock.

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.