Lam Research (NASDAQ:LRCX) Stock Falls 2.7% – Here’s What Happened

Shares of Lam Research Corporation (NASDAQ:LRCX) fell 2.7% during mid-day trading on Thursday. The stock traded as low as $316.66 and last traded at $320.59. 8,957,749 shares traded hands during mid-day trading, a decline of 16% from the average daily volume of 10,726,895 shares. The stock had previously closed at $329.51.

Key Headlines Impacting Lam Research

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

• Positive Sentiment: Lam Research is benefiting from rising demand for semiconductor-manufacturing equipment, particularly from advanced packaging, high-bandwidth memory (HBM) and AI-related chip production. The company’s earnings growth, improving margins and strong return on equity support the long-term investment case. Is Lam Research a Smart AI Stock Pick for Long-Term Investors?
• Positive Sentiment: Lam was highlighted alongside NVIDIA, Applied Materials and TSMC as a chip-industry company with dependable earnings and exposure to the AI investment cycle. Its latest reported quarter also exceeded analyst expectations for both earnings and revenue, with revenue up 30% year over year. 4 Top Chip Stocks With Dependable Earnings to Ride the AI Boom
• Neutral Sentiment: Lam Research is receiving unusually high investor attention, but the “trending stock” coverage does not identify a new company announcement or fundamental catalyst. Lam Research Is a Trending Stock
• Negative Sentiment: Valuation remains a key concern. Analysts note that Lam is growing faster than KLA but trades at a similar forward earnings multiple and at a higher price relative to trailing free cash flow. With the stock up roughly 73% this year, investors may be taking profits or demanding stronger evidence that AI-related growth can justify the premium. Is Lam Research a Smart AI Stock Pick for Long-Term Investors?

Wall Street Analyst Weigh In

LRCX has been the subject of several research reports. Berenberg Bank set a $420.00 price target on Lam Research in a research report on Wednesday, September 9th. Stifel Nicolaus raised their price objective on Lam Research from $325.00 to $425.00 and gave the company a “buy” rating in a report on Friday, July 10th. Mizuho lowered their target price on shares of Lam Research from $370.00 to $365.00 and set an “outperform” rating on the stock in a research note on Tuesday, August 25th. Fundamental Research set a $390.00 target price on shares of Lam Research in a research report on Thursday, October 1st. Finally, HSBC reissued a “hold” rating and issued a $333.00 price target on shares of Lam Research in a research note on Monday, July 27th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $364.59.

Lam Research Price Performance

The company has a debt-to-equity ratio of 0.30, a current ratio of 2.63 and a quick ratio of 1.91. The stock’s fifty day moving average is $310.02 and its 200-day moving average is $305.12. The stock has a market cap of $401.19 billion, a PE ratio of 55.66, a price-to-earnings-growth ratio of 1.32 and a beta of 1.85.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.69 by $0.13. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The firm had revenue of $6.72 billion during the quarter, compared to analysts’ expectations of $6.66 billion. During the same period last year, the business earned $1.33 earnings per share. Lam Research’s revenue 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, equities analysts anticipate that Lam Research Corporation will post 9.34 EPS for the current year.

Lam Research Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 23rd will be issued a dividend of $0.33 per share. The ex-dividend date is Wednesday, September 23rd. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.4%. This is an increase from Lam Research’s previous quarterly dividend of $0.26. Lam Research’s payout ratio is 22.92%.

Insider Activity

In other Lam Research news, Director Abhijit Y. Talwalkar sold 18,282 shares of the firm’s stock in a transaction on Monday, July 13th. The stock was sold at an average price of $335.00, for a total transaction of $6,124,470.00. Following the completion of the sale, the director owned 87,142 shares of the company’s stock, valued at $29,192,570. This trade represents a 17.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ava Harter sold 5,000 shares of Lam Research stock in a transaction on Monday, August 31st. The shares were sold at an average price of $302.46, for a total value of $1,512,300.00. Following the completion of the sale, the insider owned 42,462 shares in the company, valued at $12,843,056.52. This represents a 10.53% 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. In the last 90 days, insiders have sold 32,839 shares of company stock valued at $10,644,740. 0.31% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Lam Research

A number of hedge funds have recently modified their holdings of LRCX. Paladin Partners LLC acquired a new stake in shares of Lam Research during the 2nd quarter worth about $26,000. Quintet Private Bank Europe S.A. lifted its position in Lam Research by 100.0% in the third quarter. Quintet Private Bank Europe S.A. now owns 100 shares of the semiconductor company’s stock valued at $33,000 after buying an additional 50 shares during the last quarter. Bravera Wealth purchased a new position in Lam Research during the second quarter worth about $46,000. Cedar Mountain Advisors LLC increased its position in shares of Lam Research by 242.9% during the first quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company’s stock valued at $26,000 after acquiring an additional 85 shares during the last quarter. Finally, Comprehensive Financial Planning Inc. PA acquired a new stake in shares of Lam Research during the second quarter valued at about $52,000. 84.61% of the stock is currently owned by hedge funds and other institutional investors.

Lam Research Company Profile

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.