Lam Research (NASDAQ:LRCX) Shares Down 4.3% – What’s Next?

Lam Research Corporation (NASDAQ:LRCX)’s share price fell 4.3% during trading on Thursday . The company traded as low as $208.00 and last traded at $209.49. 9,091,333 shares changed hands during mid-day trading, a decline of 25% from the average session volume of 12,146,335 shares. The stock had previously closed at $218.87.

Lam Research News Roundup

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

• Positive Sentiment: Lam announced a long‑term collaboration with IBM to advance sub‑1nm logic scaling (materials, processes and High‑NA EUV), reinforcing Lam’s role in next‑generation AI and logic chip roadmaps — this supports long‑term growth expectations. Lam Research IBM Alliance Targets Sub 1nm Logic And AI Chip Demand
• Positive Sentiment: Analysts are raising estimates and price targets (Barclays bullish update; an analyst upgrade drove an intraday lift), which supports upside sentiment and institutional demand. Barclays Forecasts Strong Price Appreciation for Lam Research
• Positive Sentiment: Recent earnings beat and strong AI/advanced packaging demand underpin a stronger revenue/EPS outlook; one note highlights a ~33% three‑month rally driven by those fundamentals. That momentum still supports medium‑term upside if WFE (wafer fab equipment) spending stays robust. LRCX Stock Soars 33% in Three Months
• Positive Sentiment: Industry analysis and company commentary point to a supply‑constrained WFE cycle that could create a multi‑year revenue runway for equipment suppliers like Lam. Lam Research: Supply-Constrained WFE Cycle Sets Up A Multi-Year Runway
• Positive Sentiment: Short interest has declined materially in February (down ~20.7% vs. mid‑Feb), which can reduce downward pressure from short squeezes and indicates fewer bearish bets outstanding.
• Neutral Sentiment: Industry‑wide trends (higher chip gear spending forecasts) are positive for the group but create correlated moves across peers; Lam’s stock can be moved by sector flows as much as company news. Chip Gear Spending Shows No Signs Of Slowing, Analyst Says
• Neutral Sentiment: Reports show some hedge funds increasing short exposure amid geopolitical and credit worries; this is a macro hedge that can amplify volatility but doesn’t target Lam specifically. Hazeltree Finds Hedge Funds Ramp Up Short Bets
• Negative Sentiment: Valuation concerns: some analysts/commentators argue the recent rally has stretched valuation and that the stock may need to “come back to earth,” which supports profit‑taking and pressure on near‑term performance. Lam Research: Wonderful Company, But The Price Needs To Come Back To Earth

Analyst Ratings Changes

LRCX has been the subject of a number of recent research reports. Bank of America boosted their price target on shares of Lam Research from $195.00 to $245.00 and gave the company a “buy” rating in a research note on Tuesday, January 13th. Citigroup boosted their target price on shares of Lam Research from $265.00 to $300.00 and gave the stock a “buy” rating in a research report on Thursday, January 29th. JPMorgan Chase & Co. upped their target price on shares of Lam Research from $165.00 to $300.00 and gave the stock an “overweight” rating in a report on Thursday, January 29th. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $320.00 price target (up from $265.00) on shares of Lam Research in a research report on Thursday, January 29th. Finally, Morgan Stanley lifted their price target on Lam Research from $244.00 to $254.00 and gave the company an “equal weight” rating in a research note on Wednesday, February 25th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $245.35.

Lam Research Stock Performance

The company has a debt-to-equity ratio of 0.37, a current ratio of 2.26 and a quick ratio of 1.61. The company’s fifty day moving average price is $223.44 and its 200 day moving average price is $171.66. The company has a market cap of $261.60 billion, a PE ratio of 42.93, a P/E/G ratio of 2.32 and a beta of 1.77.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings results on Wednesday, January 28th. The semiconductor company reported $1.27 earnings per share for the quarter, topping the consensus estimate of $1.17 by $0.10. The business had revenue of $5.34 billion for the quarter, compared to analysts’ expectations of $5.23 billion. Lam Research had a net margin of 30.22% and a return on equity of 62.81%. The firm’s revenue for the quarter was up 22.1% compared to the same quarter last year. During the same period in the previous year, the company earned $0.91 earnings per share. Lam Research has set its Q3 2026 guidance at 1.250-1.450 EPS. On average, equities research analysts predict that Lam Research Corporation will post 3.71 earnings per share for the current year.

Lam Research Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 8th. Stockholders of record on Wednesday, March 4th will be issued a $0.26 dividend. The ex-dividend date of this dividend is Wednesday, March 4th. This represents a $1.04 annualized dividend and a dividend yield of 0.5%. Lam Research’s dividend payout ratio is currently 21.31%.

Insider Activity at Lam Research

In other Lam Research news, Director Eric Brandt sold 35,000 shares of the company’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $225.60, for a total value of $7,896,000.00. Following the completion of the transaction, the director owned 253,705 shares in the company, valued at $57,235,848. This represents a 12.12% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Douglas R. Bettinger sold 50,057 shares of the firm’s stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $224.03, for a total value of $11,214,269.71. Following the sale, the chief financial officer directly owned 1,081,705 shares of the company’s stock, valued at approximately $242,334,371.15. This represents a 4.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 130,886 shares of company stock valued at $29,658,802. 0.31% of the stock is owned by insiders.

Hedge Funds Weigh In On Lam Research

Several institutional investors have recently added to or reduced their stakes in LRCX. Vanguard Group Inc. grew its position in shares of Lam Research by 0.3% during the 3rd quarter. Vanguard Group Inc. now owns 130,974,214 shares of the semiconductor company’s stock valued at $17,537,447,000 after acquiring an additional 364,949 shares during the period. State Street Corp raised its holdings in shares of Lam Research by 0.4% in the 3rd 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 period. JPMorgan Chase & Co. raised its holdings in shares of Lam Research by 14.4% in the 2nd quarter. JPMorgan Chase & Co. now owns 40,622,437 shares of the semiconductor company’s stock worth $3,954,188,000 after purchasing an additional 5,102,589 shares during the period. Geode Capital Management LLC lifted its stake in Lam Research by 3.5% in the second quarter. Geode Capital Management LLC now owns 33,802,736 shares of the semiconductor company’s stock valued at $3,280,484,000 after purchasing an additional 1,135,405 shares during the last quarter. Finally, Invesco Ltd. lifted its stake in Lam Research by 7.7% in the fourth quarter. Invesco Ltd. now owns 22,821,354 shares of the semiconductor company’s stock valued at $3,906,559,000 after purchasing an additional 1,638,406 shares during the last quarter. Institutional investors own 84.61% of the company’s stock.

About Lam Research

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.