Lam Research (NASDAQ:LRCX) Stock Price Down 4.9% – What’s Next?

Lam Research Corporation (NASDAQ:LRCX)’s share price fell 4.9% during trading on Friday. The stock traded as low as $263.14 and last traded at $263.94. 11,317,923 shares were traded during mid-day trading, an increase of 6% from the average session volume of 10,676,158 shares. The stock had previously closed at $277.46.

Trending Headlines about Lam Research

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

• Positive Sentiment: Lam Research is integrating NVIDIA’s NanoVDB open-source library into its SEMulator3D platform, enabling faster GPU-accelerated wafer-etch modeling. The collaboration could improve chip-design and manufacturing efficiency and strengthen Lam’s position in AI-enabled semiconductor fabrication. Lam Research Ties AI Fab Push To Faster SEMulator3D Modeling
• Positive Sentiment: Analysts continue to see substantial long-term upside, with one consensus target implying approximately 25.6% appreciation and Benzinga’s analyst survey showing an average target near $346. Upward earnings-estimate revisions may provide additional support if the upcoming report confirms strong demand. Wall Street Analysts See a 25.6% Upside
• Positive Sentiment: Twenty-four exchange-traded funds added Lam Research holdings on October 13, indicating continued institutional interest despite the recent pullback. 24 ETFs Add Lam Research Holdings
• Neutral Sentiment: Options markets are pricing in a potentially large post-earnings move, with roughly $28.6 billion of Lam Research exposure tied to the event. This signals heightened volatility rather than a clear bullish or bearish direction. Lam Research Could Swing $28.6 Billion After Earnings
• Neutral Sentiment: The earnings preview focuses on September-quarter revenue, gross margin, and other operating metrics beyond headline EPS and sales estimates. Investors will be watching for evidence that demand from advanced logic, memory, and AI-related customers is accelerating. Lam Research Q1 Earnings Preview
• Negative Sentiment: Lam Research has recorded its longest losing streak since 1984, reflecting weak near-term sentiment and concern that the stock’s premium valuation leaves little room for an earnings disappointment. Lam Research Stock Hits Longest Losing Streak
• Negative Sentiment: Hotter-than-expected inflation data triggered broader selling in semiconductor stocks, as investors worried that persistently high interest rates could restrain AI infrastructure and fab spending. Lam Research declined alongside Lattice Semiconductor, Amkor, Entegris, and MACOM. Semiconductor Stocks Trade Down

Analysts Set New Price Targets

Several analysts have recently weighed in on the stock. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $320.00 price objective on shares of Lam Research in a research report on Thursday, July 30th. Jefferies Financial Group set a $335.00 price target on shares of Lam Research and gave the stock a “buy” rating in a research note on Thursday, July 30th. UBS Group reduced their price target on shares of Lam Research from $435.00 to $425.00 and set a “buy” rating for the company in a research report on Tuesday, September 1st. Evercore reissued an “outperform” rating and issued a $355.00 price target on shares of Lam Research in a research report on Monday, July 20th. Finally, Berenberg Bank set a $420.00 price objective on shares of Lam Research in a research note on Wednesday, September 9th. One analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, Lam Research currently has a consensus rating of “Moderate Buy” and an average price target of $364.59.

Lam Research Trading Down 4.9%

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 firm has a market capitalization of $330.30 billion, a PE ratio of 45.82, a price-to-earnings-growth ratio of 1.14 and a beta of 1.85. The business’s 50-day moving average price is $309.98 and its 200-day moving average price is $308.35.

Lam Research (NASDAQ:LRCX) last announced its earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 EPS for the quarter, beating analysts’ consensus estimates of $1.69 by $0.13. The business had revenue of $6.72 billion for the quarter, compared to analysts’ expectations of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The company’s quarterly revenue was up 30.0% on a year-over-year basis. During the same period in the previous year, the company posted $1.33 EPS. 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 9.34 earnings per share for the current fiscal year.

Lam Research Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 23rd were paid a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a dividend yield of 0.5%. This is a positive change from Lam Research’s previous quarterly dividend of $0.26. The ex-dividend date was Wednesday, September 23rd. Lam Research’s payout ratio is currently 22.92%.

Insider Transactions at Lam Research

In related news, insider Ava Harter sold 5,000 shares of the business’s stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $302.46, for a total value of $1,512,300.00. Following the transaction, the insider owned 42,462 shares in the company, valued at $12,843,056.52. The trade was a 10.53% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 9,557 shares of the company’s stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $314.74, for a total value of $3,007,970.18. Following the sale, the director directly owned 20,995 shares of the company’s stock, valued at approximately $6,607,966.30. This represents a 31.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.31% of the company’s stock.

Institutional Investors Weigh In On Lam Research

Several hedge funds have recently modified their holdings of the stock. State Street Corp lifted its stake in shares of Lam Research by 2.6% in the 2nd quarter. State Street Corp now owns 60,704,130 shares of the semiconductor company’s stock worth $26,320,468,000 after acquiring an additional 1,545,830 shares during the period. Invesco Ltd. increased its stake in shares of Lam Research by 7.7% during the fourth quarter. Invesco Ltd. now owns 22,821,354 shares of the semiconductor company’s stock worth $3,906,559,000 after acquiring an additional 1,638,406 shares during the period. Bank of America Corp DE raised its holdings in Lam Research by 5.5% during the second quarter. Bank of America Corp DE now owns 11,244,147 shares of the semiconductor company’s stock worth $4,872,426,000 after purchasing an additional 584,489 shares in the last quarter. Van ECK Associates Corp raised its holdings in Lam Research by 411.8% during the second quarter. Van ECK Associates Corp now owns 11,089,395 shares of the semiconductor company’s stock worth $4,805,368,000 after purchasing an additional 8,922,854 shares in the last quarter. Finally, Amundi raised its holdings in Lam Research by 23.7% during the first quarter. Amundi now owns 10,147,479 shares of the semiconductor company’s stock worth $2,168,107,000 after purchasing an additional 1,942,862 shares in the last quarter. 84.61% of the stock is owned by institutional investors and hedge funds.

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.