Lam Research (NASDAQ:LRCX) Shares Up 1.6% – Should You Buy?

Lam Research Corporation (NASDAQ:LRCX) shares rose 1.6% during trading on Tuesday . The company traded as high as $316.86 and last traded at $311.41. 6,860,727 shares traded hands during mid-day trading, a decline of 39% from the average session volume of 11,321,047 shares. The stock had previously closed at $306.40.

Key Stories Impacting Lam Research

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

• Positive Sentiment: AI demand and analyst optimism support the stock. Lam Research was highlighted as a top-ranked AI-led semiconductor-equipment company, while Zacks upgraded LRCX to Rank #1, or “Strong Buy,” citing stronger earnings prospects. Buy and Hold These 2 Top-Ranked AI-Led Semiconductor Equipment Stocks Lam Research Upgraded to Strong Buy
• Positive Sentiment: Estimates were raised. Erste Group Bank increased its fiscal 2027 EPS forecast for Lam Research to $9.27 from $8.05, above the current consensus estimate of $9.24, reinforcing expectations for earnings growth. Erste Group Bank Raises Lam Research EPS Estimate
• Positive Sentiment: Panel-level packaging could add a new growth avenue. Lam Research is entering panel-level packaging, a developing market supported by larger, more complex AI chips. Success could expand its addressable market beyond traditional wafer-fabrication equipment. Lam Research Enters Panel-Level Packaging
• Neutral Sentiment: Investors are reviewing the latest earnings-call issues. Analysts’ questions focus on whether AI-related demand, execution and valuation justify buying LRCX after its strong performance. Five Analyst Questions From Lam Research’s Q2 Earnings Call
• Neutral Sentiment: SpaceX’s planned Terafab introduces an uncertain industry development. The massive facility could challenge the memory market’s existing leaders, but construction, timing and implications for Lam Research’s equipment demand remain unclear. SpaceX Terafab Facility
• Negative Sentiment: Growing AI-tool reliance creates additional risks. Potential operational disruptions, intellectual-property uncertainty and legal exposure could weigh on Lam Research if AI systems are increasingly used in research and manufacturing. AI Reliance Risks for Lam Research

Analysts Set New Price Targets

Several research firms have issued reports on LRCX. B. Riley Financial cut their target price on Lam Research from $385.00 to $350.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. Rothschild & Co Redburn increased their price target on Lam Research from $305.00 to $420.00 and gave the stock a “buy” rating in a report on Wednesday, June 17th. Wall Street Zen downgraded Lam Research from a “buy” rating to a “hold” rating in a research report on Sunday, May 10th. Raymond James Financial set a $425.00 price objective on shares of Lam Research in a report on Wednesday, June 10th. Finally, Susquehanna reaffirmed a “positive” rating and issued a $475.00 target price (up from $385.00) on shares of Lam Research in a research report on Tuesday, June 30th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $358.47.

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 has a 50 day moving average price of $339.68 and a two-hundred day moving average price of $280.63. The firm has a market capitalization of $389.44 billion, a price-to-earnings ratio of 54.06, a PEG ratio of 1.25 and a beta of 1.84.

Lam Research (NASDAQ:LRCX) last posted its earnings results 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 return on equity of 67.60% and a net margin of 31.27%.The firm had revenue of $6.72 billion for the quarter, compared to analyst estimates of $6.66 billion. During the same quarter in the prior year, the company earned $1.33 EPS. Lam Research’s revenue was up 30.0% on a year-over-year basis. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, analysts expect that Lam Research Corporation will post 9.24 EPS for the current year.

Lam Research Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 8th. Stockholders of record on Wednesday, June 17th were given a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a dividend yield of 0.3%. The ex-dividend date of this dividend was Wednesday, June 17th. Lam Research’s dividend payout ratio is currently 18.06%.

Insider Activity at Lam Research

In other Lam Research news, SVP Neil J. Fernandes sold 7,659 shares of the stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $309.60, for a total transaction of $2,371,226.40. Following the sale, the senior vice president directly owned 58,470 shares in the company, valued at $18,102,312. This represents a 11.58% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Abhijit Y. Talwalkar sold 18,282 shares of the firm’s stock in a transaction that occurred on Monday, July 13th. The shares were sold at an average price of $335.00, for a total transaction of $6,124,470.00. Following the completion of the transaction, the director directly owned 87,142 shares of the company’s stock, valued at $29,192,570. This represents a 17.34% 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. Over the last quarter, insiders sold 80,441 shares of company stock worth $27,614,296. Corporate insiders own 0.31% of the company’s stock.

Institutional Trading of Lam Research

Several hedge funds have recently modified their holdings of the stock. Brighton Jones LLC grew its stake in Lam Research by 1,032.4% during the 4th quarter. Brighton Jones LLC now owns 14,189 shares of the semiconductor company’s stock worth $1,025,000 after purchasing an additional 12,936 shares in the last quarter. Caxton Associates LLP purchased a new position in shares of Lam Research in the 1st quarter valued at about $239,000. Gabelli Funds LLC purchased a new position in shares of Lam Research in the 2nd quarter valued at about $253,000. NewEdge Advisors LLC grew its position in shares of Lam Research by 2.7% during the second quarter. NewEdge Advisors LLC now owns 100,528 shares of the semiconductor company’s stock worth $9,785,000 after buying an additional 2,661 shares in the last quarter. Finally, Osterweis Capital Management Inc. grew its position in shares of Lam Research by 5,206.7% during the second quarter. Osterweis Capital Management Inc. now owns 796 shares of the semiconductor company’s stock worth $77,000 after buying an additional 781 shares in the last quarter. 84.61% of the stock is currently owned by institutional investors and hedge funds.

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.