Lam Research (NASDAQ:LRCX) Stock Jumps 1.4% – Should You Buy?

Lam Research Corporation (NASDAQ:LRCX) shares were up 1.4% during trading on Tuesday. The company traded as high as $241.68 and last traded at $240.85. Approximately 9,836,370 shares changed hands during mid-day trading, a decline of 8% from the average daily volume of 10,744,881 shares. The stock had previously closed at $237.50.

Trending Headlines about Lam Research

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

• Positive Sentiment: Strong earnings and guidance support the rebound. Lam Research reported quarterly revenue of $8.22 billion and adjusted EPS of $2.20, exceeding expectations. Management’s outlook for approximately $8.60 billion in next-quarter revenue and $2.33 in EPS signals continued demand, while it expects 2026 systems revenue to grow more than 40% year over year. Lam Research Gains as Strong Earnings and a Chip-Sector Rebound Support Shares
• Positive Sentiment: Record foundry sales reinforce the AI investment thesis. Foundry revenue reached a record level in fiscal first-quarter 2027, increasing its share of Systems revenue to 46% from 44%. This points to rising demand for advanced chip-manufacturing equipment. Lam Research Sees Record Foundry Sales
• Positive Sentiment: Industry conditions are improving. SK Hynix’s expectation that a memory shortage could persist into 2030 has fueled hopes for years of semiconductor-fab construction, supporting equipment suppliers including Lam Research. Chip Equipment Stocks Rally as SK Hynix Signals Memory Shortage Into 2030
• Neutral Sentiment: Valuation debate remains central. Analysts and investors are reassessing whether the recent selloff has made LRCX undervalued. Coverage cites a median analyst price target near $400, but the stock’s high growth expectations and semiconductor-cycle exposure leave uncertainty about how quickly sentiment can recover. Is Lam Research Undervalued As Earnings Reframe The AI Memory Bet?
• Negative Sentiment: Insider selling is a cautionary signal. Reported open-market insider activity over the past six months consisted of 55 sales and no purchases, including sales by the CEO and other senior executives. This may weigh on sentiment, although insider transactions do not necessarily indicate a change in the company’s fundamental outlook.

Analysts Set New Price Targets

Several brokerages have recently weighed in on LRCX. Morgan Stanley set a $339.00 price objective on shares of Lam Research and gave the stock an “overweight” rating in a research note on Thursday, October 22nd. Wells Fargo & Company reaffirmed an “overweight” rating and set a $350.00 price objective (down from $450.00) on shares of Lam Research in a report on Thursday, July 30th. Needham & Company LLC cut their price objective on shares of Lam Research from $390.00 to $290.00 and set a “buy” rating on the stock in a research report on Thursday, October 22nd. Evercore set a $315.00 price objective on shares of Lam Research in a research report on Tuesday, October 20th. Finally, TD Cowen reiterated a “buy” rating and issued a $400.00 price target (up from $340.00) on shares of Lam Research in a report on Thursday, July 9th. Twenty-six investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $360.23.

Lam Research Stock Down 0.2%

The company has a debt-to-equity ratio of 0.27, a current ratio of 2.48 and a quick ratio of 1.86. The company has a market capitalization of $316.41 billion, a PE ratio of 37.81, a P/E/G ratio of 0.86 and a beta of 1.85. The business’s 50 day simple moving average is $296.95 and its 200 day simple moving average is $283.50.

Lam Research (NASDAQ:LRCX) last announced its quarterly earnings data on Wednesday, October 21st. The semiconductor company reported $2.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.18 by $0.02. Lam Research had a return on equity of 72.15% and a net margin of 32.34%. The business had revenue of $8.22 billion for the quarter, compared to analysts’ expectations of $8.14 billion. During the same period last year, the firm earned $1.26 earnings per share. The company’s revenue for the quarter was up 54.4% compared to the same quarter last year. As a group, analysts anticipate that Lam Research Corporation will post 9.59 earnings per share for the current fiscal year.

Lam Research Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 23rd were given a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date was Wednesday, September 23rd. This is a positive change from Lam Research’s previous quarterly dividend of $0.26. Lam Research’s payout ratio is currently 19.67%.

Insider Activity

In other news, insider Ava Harter sold 5,000 shares of the company’s stock in a transaction that occurred 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 directly owned 42,462 shares of the company’s stock, valued at approximately $12,843,056.52. This represents a 10.53% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 9,557 shares of Lam Research stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $314.74, for a total transaction of $3,007,970.18. Following the completion of the transaction, the director directly owned 20,995 shares in the company, valued at $6,607,966.30. This represents a 31.28% decrease in their position. The SEC filing for this sale provides additional information. 0.31% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Lam Research

Several hedge funds have recently bought and sold shares of LRCX. Van ECK Associates Corp grew its position in shares of Lam Research by 411.8% during the 2nd quarter. Van ECK Associates Corp now owns 11,089,395 shares of the semiconductor company’s stock valued at $4,805,368,000 after acquiring an additional 8,922,854 shares during the period. Bank of New York Mellon Corp bought a new stake in shares of Lam Research in the second quarter valued at approximately $3,777,585,000. Jennison Associates LLC boosted its holdings in shares of Lam Research by 296.9% in the first quarter. Jennison Associates LLC now owns 3,373,306 shares of the semiconductor company’s stock worth $720,740,000 after acquiring an additional 2,523,351 shares during the period. California Public Employees Retirement System grew its holdings in Lam Research by 50.6% during the 1st quarter. California Public Employees Retirement System now owns 5,870,899 shares of the semiconductor company’s stock valued at $1,254,376,000 after buying an additional 1,972,277 shares in the last quarter. Finally, Amundi lifted its holdings in shares of Lam Research by 23.7% in the first quarter. Amundi now owns 10,147,479 shares of the semiconductor company’s stock worth $2,168,107,000 after buying an additional 1,942,862 shares in the last quarter. 84.61% of the stock is owned by institutional investors and hedge funds.

About Lam Research

Lam Research Corporation (NASDAQ:LRCX) is a semiconductor equipment company that develops and manufactures systems used to fabricate integrated circuits. Its technologies support key stages of wafer processing, helping semiconductor manufacturers create the increasingly complex structures found in memory, logic and other types of chips.

The company’s product portfolio includes etch systems, which selectively remove materials from wafers; deposition systems, which apply thin films; and cleaning solutions used to remove contaminants and residue during manufacturing.