Lam Research (NASDAQ:LRCX) Trading 6.8% Higher – Here’s Why

by · The Cerbat Gem

Shares of Lam Research Corporation (NASDAQ:LRCX – Get Free Report) were up 6.8% on Wednesday . The stock traded as high as $293.63 and last traded at $292.09. Approximately 8,530,711 shares changed hands during mid-day trading, a decline of 22% from the average daily volume of 10,951,933 shares. The stock had previously closed at $273.38.

Key Headlines Impacting Lam Research

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

  • Positive Sentiment: Lam Research opened a research lab in Salzburg, Austria, to advance chip-packaging technology that can increase chip density and cut costs, reinforcing its role in AI infrastructure spending. Reuters: Lam Research opens Austria lab to advance chip packaging, cut costs
  • Positive Sentiment: Morgan Stanley upgraded LRCX to Overweight after raising its wafer fabrication equipment outlook, signaling stronger demand across the semiconductor equipment cycle. Barchart: LRCX Overweight
  • Positive Sentiment: Lam Research raised its wafer-fab equipment outlook amid AI demand, with commentary pointing to record quarterly revenue and EPS and continued strength in etch, deposition, and memory-related spending. Zacks: LRCX Ups WFE View Amid AI Demand
  • Positive Sentiment: Bernstein lifted price targets on LRCX after increasing global wafer fabrication equipment spending forecasts, citing better memory expansion prospects in China and beyond. Yahoo Finance/Investing.com: Bernstein lifts price targets on LRCX
  • Neutral Sentiment: Commentary comparing Lam Research with Applied Materials suggests investors still see LRCX as a major AI-chip beneficiary, but valuation and product breadth remain a competitive debate. Zacks: Lam Research vs. Applied Materials
  • Neutral Sentiment: Broader coverage on semiconductor equipment and memory-chip spending highlights a favorable industry backdrop for LRCX, though these stories are more thematic than company-specific. 24/7 Wall St.: semiconductor equipment trade

Analyst Upgrades and Downgrades

Several research analysts have weighed in on LRCX shares. KeyCorp reiterated a “sector weight” rating on shares of Lam Research in a research note on Thursday, January 29th. Weiss Ratings downgraded Lam Research from a “buy (b)” rating to a “buy (b-)” rating in a research note on Thursday, May 14th. Stifel Nicolaus lifted their target price on Lam Research from $300.00 to $325.00 and gave the company a “buy” rating in a research note on Thursday, April 23rd. Citigroup reiterated a “buy” rating and issued a $315.00 target price (up from $300.00) on shares of Lam Research in a research note on Thursday, April 23rd. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $300.00 target price on shares of Lam Research in a research note on Thursday, April 23rd. Twenty-seven equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, Lam Research presently has a consensus rating of “Moderate Buy” and a consensus target price of $292.97.

Read Our Latest Stock Analysis on LRCX

Lam Research Stock Up 6.8%

The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.77 and a current ratio of 2.54. The firm has a fifty day moving average price of $248.98 and a 200 day moving average price of $212.77. The firm has a market capitalization of $365.28 billion, a price-to-earnings ratio of 55.11, a PEG ratio of 2.30 and a beta of 1.81.

Lam Research (NASDAQ:LRCX – Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 EPS for the quarter, beating the consensus estimate of $1.36 by $0.11. The business had revenue of $5.84 billion during the quarter, compared to analysts’ expectations of $5.70 billion. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.The company’s quarterly revenue was up 23.8% compared to the same quarter last year. During the same period last year, the firm earned $1.04 EPS. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. As a group, sell-side analysts expect that Lam Research Corporation will post 5.67 EPS for the current fiscal year.

Insider Activity

In other news, CFO Douglas R. Bettinger sold 50,057 shares of the firm’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 value of $11,214,269.71. Following the completion of the sale, the chief financial officer directly owned 1,081,705 shares of the company’s stock, valued at $242,334,371.15. This trade represents a 4.42% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Ava Harter sold 6,010 shares of the firm’s stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $258.66, for a total value of $1,554,546.60. Following the completion of the sale, the insider directly owned 53,205 shares of the company’s stock, valued at $13,762,005.30. This represents a 10.15% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 120,066 shares of company stock valued at $27,953,242 in the last three months. 0.31% of the stock is currently owned by company insiders.

Institutional Trading of Lam Research

Several hedge funds have recently modified their holdings of the business. Vanguard Group Inc. raised its holdings in Lam Research by 0.3% during the third quarter. Vanguard Group Inc. now owns 130,974,214 shares of the semiconductor company’s stock worth $17,537,447,000 after purchasing an additional 364,949 shares during the last quarter. State Street Corp raised its holdings in Lam Research by 0.4% during the third quarter. State Street Corp now owns 59,817,352 shares of the semiconductor company’s stock worth $8,024,684,000 after purchasing an additional 265,805 shares during the last quarter. Geode Capital Management LLC raised its holdings in Lam Research by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 33,747,368 shares of the semiconductor company’s stock worth $5,764,117,000 after purchasing an additional 126,613 shares during the last quarter. Invesco Ltd. raised its holdings in Lam Research by 7.7% during the fourth quarter. Invesco Ltd. now owns 22,821,354 shares of the semiconductor company’s stock worth $3,906,559,000 after purchasing an additional 1,638,406 shares during the last quarter. Finally, Norges Bank acquired a new position in Lam Research during the fourth quarter worth $3,645,427,000. 84.61% of the stock is owned by institutional investors and hedge funds.

Lam Research Company Profile

(Get Free Report)

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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