Lam Research (NASDAQ:LRCX) Stock Price Down 5.9% – Here’s Why

Lam Research Corporation (NASDAQ:LRCX) shares were down 5.9% on Friday . The company traded as low as $232.00 and last traded at $233.46. Approximately 18,140,935 shares traded hands during mid-day trading, an increase of 28% from the average daily volume of 14,174,858 shares. The stock had previously closed at $248.17.

Key Headlines Impacting Lam Research

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

• Positive Sentiment: Multiple major brokers sharply raised targets (many to $275–$300), signaling broad analyst bullishness after the quarter and suggesting upside versus earlier prices. These Analysts Boost Their Forecasts On Lam Research Following Strong Q2 Results
• Positive Sentiment: JPMorgan and Citigroup raised targets to $300 (overweight/buy), and firms including Needham, TD Cowen, Wells Fargo, Deutsche and Stifel also lifted targets — a strong institutional vote of confidence for continued AI/foundry-driven demand. Analyst target increases (Benzinga)
• Positive Sentiment: Lam beat Q2 estimates (EPS $1.27 vs. $1.17 est.; revenue $5.34B vs. $5.23B) and issued Q3 EPS guidance of $1.25–$1.45 and revenue above consensus — concrete operational drivers behind analyst upgrades. Lam Research Q2 Earnings Surpass Expectations, Revenues Rise Y/Y
• Neutral Sentiment: New Street Research raised its target to $235 but kept a neutral rating, reflecting near-term upside limited relative to recent price strength. New Street adjusts price target on Lam Research to $235
• Negative Sentiment: HSBC raised its target to $221 but maintained a “hold,” which implies downside from recent levels and highlights some analyst caution despite better results. HSBC adjusts price target on Lam Research to $221
• Negative Sentiment: Coverage notes flag valuation concerns after a large run (high P/E and steep analyst target dispersion), which may limit further upside and explains some profit‑taking. Lam Research Earnings Beat Highlights AI Demand But Raises Valuation Questions

Analysts Set New Price Targets

Several equities research analysts recently commented on the stock. New Street Research boosted their price objective on shares of Lam Research from $195.00 to $235.00 and gave the company a “neutral” rating in a research report on Friday. Oppenheimer restated an “outperform” rating and issued a $265.00 target price on shares of Lam Research in a research note on Thursday. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $320.00 price target (up from $265.00) on shares of Lam Research in a research note on Thursday. B. Riley reiterated a “buy” rating on shares of Lam Research in a report on Thursday, January 15th. Finally, Rothschild & Co Redburn increased their target price on shares of Lam Research from $150.00 to $225.00 and gave the stock a “buy” rating in a report on Tuesday, January 13th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $238.32.

Lam Research Price Performance

The stock has a market capitalization of $293.23 billion, a P/E ratio of 47.84, a price-to-earnings-growth ratio of 3.05 and a beta of 1.77. The company has a debt-to-equity ratio of 0.37, a current ratio of 2.26 and a quick ratio of 1.60. The company’s 50-day simple moving average is $187.29 and its 200-day simple moving average is $146.33.

Lam Research (NASDAQ:LRCX) last announced its quarterly earnings data on Wednesday, January 28th. The semiconductor company reported $1.27 EPS for the quarter, beating analysts’ consensus estimates of $1.17 by $0.10. The company had revenue of $5.34 billion during the quarter, compared to the consensus estimate of $5.23 billion. Lam Research had a net margin of 30.22% and a return on equity of 62.81%. The company’s quarterly revenue was up 22.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.91 EPS. Lam Research has set its Q3 2026 guidance at 1.250-1.450 EPS. As a group, sell-side analysts expect that Lam Research Corporation will post 3.71 EPS for the current fiscal year.

Lam Research Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, January 7th. Shareholders of record on Wednesday, December 3rd were paid a $0.26 dividend. The ex-dividend date was Wednesday, December 3rd. This represents a $1.04 annualized dividend and a yield of 0.4%. Lam Research’s dividend payout ratio is currently 21.31%.

Insider Buying and Selling

In other Lam Research news, Director Bethany Mayer sold 1,298 shares of the firm’s stock in a transaction on Monday, November 3rd. The stock was sold at an average price of $159.99, for a total transaction of $207,667.02. Following the completion of the sale, the director owned 1,652 shares of the company’s stock, valued at $264,303.48. This trade represents a 44.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Douglas R. Bettinger sold 40,080 shares of Lam Research stock in a transaction on Friday, November 14th. The stock was sold at an average price of $150.60, for a total transaction of $6,036,048.00. Following the transaction, the chief financial officer directly owned 987,237 shares of the company’s stock, valued at approximately $148,677,892.20. This trade represents a 3.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 41,408 shares of company stock valued at $6,248,501. Insiders own 0.31% of the company’s stock.

Institutional Investors Weigh In On Lam Research

Institutional investors have recently made changes to their positions in the company. Traphagen Investment Advisors LLC boosted its position in shares of Lam Research by 2.4% during the 4th quarter. Traphagen Investment Advisors LLC now owns 1,963 shares of the semiconductor company’s stock worth $336,000 after acquiring an additional 46 shares in the last quarter. Field & Main Bank lifted its stake in Lam Research by 1.1% in the 4th quarter. Field & Main Bank now owns 4,615 shares of the semiconductor company’s stock valued at $790,000 after purchasing an additional 50 shares during the last quarter. Capital Advisors Ltd. LLC boosted its position in Lam Research by 1.1% in the fourth quarter. Capital Advisors Ltd. LLC now owns 4,646 shares of the semiconductor company’s stock valued at $795,000 after buying an additional 51 shares in the last quarter. Global Financial Private Client LLC grew its stake in shares of Lam Research by 0.5% during the fourth quarter. Global Financial Private Client LLC now owns 11,037 shares of the semiconductor company’s stock worth $1,889,000 after buying an additional 52 shares during the last quarter. Finally, WealthCollab LLC increased its holdings in shares of Lam Research by 29.3% during the fourth quarter. WealthCollab LLC now owns 243 shares of the semiconductor company’s stock worth $42,000 after buying an additional 55 shares in the last quarter. Institutional investors own 84.61% of the company’s stock.

Lam Research Company Profile

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.