Lam Research (NASDAQ:LRCX) Stock Price Down 1.3% – Here’s Why

23 Jan 2026, 23:16 by Sarita Garza · The Markets Daily

Lam Research Corporation (NASDAQ:LRCX – Get Free Report) shares dropped 1.3% during mid-day trading on Friday . The stock traded as low as $213.87 and last traded at $217.94. Approximately 9,981,221 shares changed hands during mid-day trading, a decline of 29% from the average daily volume of 14,007,093 shares. The stock had previously closed at $220.70.

Lam Research News Roundup

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

Positive Sentiment: Zacks upgraded LRCX to a Zacks Rank #1 (Strong Buy), a move that typically attracts momentum flows and retail/institutional attention; the upgrade is being cited as a catalyst for optimism about near-term earnings and price momentum. Lam Research (LRCX) Upgraded to Strong Buy: Here’s What You Should Know
Positive Sentiment: Analyst commentary (Zacks) and coverage notes point to strong AI-chip demand and rising DRAM spending that should help LRCX beat Q2 estimates, supporting upside expectations for revenue and margins. LRCX Likely to Beat Q2 Earnings Estimates: Should You Buy the Stock?
Positive Sentiment: Media coverage highlights AI-driven momentum (a recent piece notes the stock jumped on AI buzz and tariff news), which can attract short-term buyers and program trades. Why Lam Research (LRCX) Is Up 5.0% After AI Buzz And Tariff Jitters Hit Spotlight
Neutral Sentiment: New Street raised its price target to $195 (from $140) but kept a “neutral” rating — the higher target signals improving fundamental views, but the maintained neutral limits the endorsement strength for further rallies. New Street Adjusts Lam Research Price Target to $195 From $140; Maintains Neutral Rating
Neutral Sentiment: High-profile mentions (e.g., Jim Cramer calling LRCX “the best of the best” while warning about buying parabolic moves) can boost credibility but also encourage caution among momentum-sensitive traders. Jim Cramer calls Lam Research the “best of the best” but warns against buying parabolic moves
Negative Sentiment: Unusually large put-option volume: traders bought ~87,781 puts (about +129% vs. average), a sharp rise in bearish/options-hedging activity that can signal investor risk-off, price protection flows, or speculative bearish bets — all of which can add downward pressure or volatility.
Negative Sentiment: Relative weakness vs. peers: coverage notes that LRCX underperformed competitors on Thursday, a datapoint traders watch for leadership shifts within the semiconductor equipment group and to gauge rotation risk. Lam Research Corp. stock underperforms Thursday when compared to competitors

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on LRCX shares. Sanford C. Bernstein reissued an “outperform” rating and set a $225.00 target price (up from $175.00) on shares of Lam Research in a research note on Monday, January 12th. Weiss Ratings reiterated a “buy (b)” rating on shares of Lam Research in a report on Monday, December 29th. Hsbc Global Res upgraded Lam Research to a “hold” rating in a research note on Tuesday, September 30th. Berenberg Bank boosted their target price on Lam Research from $122.00 to $165.00 and gave the company a “buy” rating in a research report on Thursday, October 23rd. Finally, BNP Paribas Exane increased their price target on Lam Research from $80.00 to $140.00 and gave the stock a “neutral” rating in a report on Thursday, October 23rd. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, Lam Research currently has a consensus rating of “Moderate Buy” and a consensus target price of $200.52.

Read Our Latest Stock Analysis on Lam Research

Lam Research Stock Performance

The firm has a market cap of $273.74 billion, a PE ratio of 48.00, a PEG ratio of 2.61 and a beta of 1.77. The company has a 50-day simple moving average of $176.68 and a two-hundred day simple moving average of $140.46. The company has a quick ratio of 1.60, a current ratio of 2.21 and a debt-to-equity ratio of 0.37.

Lam Research (NASDAQ:LRCX – Get Free Report) last released its earnings results on Wednesday, October 22nd. The semiconductor company reported $1.26 earnings per share for the quarter, beating analysts’ consensus estimates of $1.22 by $0.04. Lam Research had a net margin of 29.66% and a return on equity of 60.60%. The firm had revenue of $5.32 billion during the quarter, compared to the consensus estimate of $5.23 billion. During the same period in the prior year, the firm earned $0.86 EPS. The company’s revenue was up 27.7% compared to the same quarter last year. As a group, equities research analysts forecast 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 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend was Wednesday, December 3rd. Lam Research’s dividend payout ratio is 22.91%.

Insiders Place Their Bets

In related news, insider Ava Harter sold 9,010 shares of the company’s stock in a transaction that occurred on Monday, October 27th. The shares were sold at an average price of $157.47, for a total transaction of $1,418,804.70. Following the sale, the insider directly owned 56,786 shares in the company, valued at approximately $8,942,091.42. This represents a 13.69% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Bethany Mayer sold 1,298 shares of Lam Research stock in a transaction that occurred on Monday, November 3rd. The shares were sold at an average price of $159.99, for a total transaction of $207,667.02. Following the completion of the transaction, the director owned 1,652 shares of the company’s stock, valued at $264,303.48. This represents a 44.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 50,418 shares of company stock valued at $7,667,305 over the last ninety days. 0.31% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Lam Research

A number of large investors have recently made changes to their positions in the stock. PMV Capital Advisers LLC bought a new stake in shares of Lam Research in the 4th quarter valued at about $25,000. Stance Capital LLC purchased a new stake in shares of Lam Research during the third quarter valued at approximately $26,000. Triumph Capital Management bought a new position in shares of Lam Research in the third quarter worth approximately $27,000. Harbor Investment Advisory LLC increased its stake in shares of Lam Research by 73.9% in the fourth quarter. Harbor Investment Advisory LLC now owns 240 shares of the semiconductor company’s stock worth $41,000 after buying an additional 102 shares during the period. Finally, IMG Wealth Management Inc. bought a new stake in Lam Research during the 2nd quarter valued at $26,000. 84.61% of the stock is owned by institutional investors.

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.