Lam Research (NASDAQ:LRCX) Trading 1.4% Higher – Should You Buy?

Lam Research Corporation (NASDAQ:LRCX) traded up 1.4% during trading on Tuesday . The company traded as high as $318.61 and last traded at $314.66. 5,014,254 shares were traded during trading, a decline of 55% from the average session volume of 11,134,807 shares. The stock had previously closed at $310.17.

Key Stories Impacting Lam Research

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

• Positive Sentiment: AI spending supports the growth outlook. Lam Research is expected to benefit from sustained investment in AI infrastructure and advanced semiconductor manufacturing, with strong growth projected to extend into 2027. Lam Research sees strong growth extend into 2027 as AI spending accelerates
• Positive Sentiment: Wall Street remains broadly constructive. Mizuho maintained an “outperform” rating and reduced its price target modestly to $365 from $370, still implying meaningful potential appreciation from the referenced share price. Other coverage highlights strong analyst backing and a favorable average brokerage recommendation. Mizuho rating and price target update Wall Street analysts on Lam Research stock
• Positive Sentiment: R&D investment may reinforce Lam’s competitive position. The company plans to invest more than $3 billion over five years to expand its global R&D laboratory network and testing capacity, supporting innovation for advanced chipmaking equipment. Lam Research R&D expansion update
• Neutral Sentiment: Positive fundamentals are already reflected in the valuation. Lam Research recently exceeded quarterly earnings and revenue expectations, while revenue grew 30% year over year. Its elevated earnings multiple means investors may demand continued earnings growth to justify the stock’s valuation. Lam Research earnings growth and price strength
• Negative Sentiment: Sector-wide risk remains a headwind. Semiconductor stocks broadly sold off ahead of NVIDIA’s earnings report, reflecting investor de-risking and concern that high AI-related expectations may be difficult to exceed. Semiconductor stocks slide ahead of NVIDIA earnings

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. Weiss Ratings raised shares of Lam Research from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday. Jefferies Financial Group set a $335.00 price target on shares of Lam Research and gave the stock a “buy” rating in a research report on Thursday, July 30th. New Street Research increased their price target on shares of Lam Research from $235.00 to $280.00 and gave the stock a “neutral” rating in a research note on Monday, April 27th. Bank of America lifted their price target on shares of Lam Research from $330.00 to $480.00 and gave the company a “buy” rating in a report on Tuesday, June 23rd. Finally, Evercore reissued an “outperform” rating and set a $355.00 price objective on shares of Lam Research in a research note on Monday, July 20th. One research 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. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $357.31.

Lam Research Trading Up 1.4%

The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.30. The firm’s 50 day simple moving average is $335.90 and its 200-day simple moving average is $286.99. The company has a market capitalization of $393.74 billion, a PE ratio of 54.63, a P/E/G ratio of 1.25 and a beta of 1.84.

Lam Research (NASDAQ:LRCX) last issued its earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 EPS for the quarter, beating analysts’ consensus estimates of $1.69 by $0.13. The business had revenue of $6.72 billion for the quarter, compared to the consensus estimate of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The business’s revenue for the quarter was up 30.0% compared to the same quarter last year. During the same quarter last year, the firm posted $1.33 EPS. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, equities research analysts anticipate that Lam Research Corporation will post 9.32 EPS for the current year.

Insider Buying and Selling at Lam Research

In other Lam Research news, SVP Neil J. Fernandes sold 7,659 shares of the firm’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $309.60, for a total value of $2,371,226.40. Following the transaction, the senior vice president directly owned 58,470 shares of the company’s stock, valued at $18,102,312. This trade represents a 11.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Abhijit Y. Talwalkar sold 18,282 shares of the business’s stock in a transaction dated Monday, July 13th. The stock was sold at an average price of $335.00, for a total value of $6,124,470.00. Following the transaction, the director owned 87,142 shares in the company, valued at approximately $29,192,570. This represents a 17.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 80,441 shares of company stock valued at $27,614,296 over the last three months. 0.31% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lam Research

A number of institutional investors and hedge funds have recently bought and sold shares of LRCX. Fideuram Asset Management Ireland dac acquired a new stake in Lam Research in the fourth quarter worth approximately $10,035,000. Rokos Capital Management LLP increased its position in shares of Lam Research by 42.0% during the 1st quarter. Rokos Capital Management LLP now owns 259,921 shares of the semiconductor company’s stock valued at $55,532,000 after purchasing an additional 76,840 shares during the period. Aware Super Pty Ltd as trustee of Aware Super acquired a new position in shares of Lam Research during the 1st quarter valued at $59,973,000. Krilogy Financial LLC raised its stake in shares of Lam Research by 19.5% in the 1st quarter. Krilogy Financial LLC now owns 28,111 shares of the semiconductor company’s stock worth $6,006,000 after buying an additional 4,584 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd bought a new stake in shares of Lam Research in the 1st quarter worth $26,489,000. Hedge funds and other institutional investors own 84.61% of the company’s stock.

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.