Lam Research (NASDAQ:LRCX) Stock Price Down 7.5% – What’s Next?

Lam Research Corporation (NASDAQ:LRCX)’s share price fell 7.5% during mid-day trading on Tuesday . The company traded as low as $258.53 and last traded at $269.61. 15,986,599 shares changed hands during mid-day trading, an increase of 41% from the average session volume of 11,309,119 shares. The stock had previously closed at $291.61.

Key Lam Research News

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

• Positive Sentiment: Investor letters from Carillon Tower Advisers and Columbia Threadneedle highlighted Lam Research’s exposure to robust semiconductor capital spending, AI data-center construction and memory investment. These trends support demand for Lam’s wafer-fabrication equipment. Lam Research Corporation Rose on Strong Semiconductor Capital Spending
• Positive Sentiment: Lam Research enters the earnings event after reporting fiscal third-quarter revenue of $5.84 billion and record non-GAAP EPS of $1.47, which exceeded estimates by 8.1%. The prior outperformance and AI-driven demand are supporting the bullish case for the stock. Dear Lam Research Stock Fans, Mark Your Calendars for July 29
• Neutral Sentiment: Lam Research is scheduled to report fiscal fourth-quarter 2026 results after the market closes on July 29. Investors will focus on revenue, margins, earnings guidance and management’s outlook for AI, memory and foundry-related equipment demand. Earnings To Watch: Lam Research Reports Q2 Results Tomorrow
• Negative Sentiment: Chip stocks were among the market’s weakest groups, with Lam Research listed alongside Sandisk and Coherent as major decliners. The sector-wide selling suggests profit-taking and caution ahead of earnings, rather than a company-specific deterioration reported in these articles. Most Stocks Are Higher Despite the S&P 500’s Reversal

Wall Street Analysts Forecast Growth

LRCX has been the subject of several recent research reports. Erste Group Bank downgraded shares of Lam Research from a “buy” rating to a “hold” rating in a research note on Thursday, April 2nd. The Goldman Sachs Group restated a “buy” rating and set a $290.00 price target on shares of Lam Research in a research note on Thursday, April 23rd. Berenberg Bank lifted their price objective on shares of Lam Research from $265.00 to $335.00 and gave the company a “buy” rating in a research note on Thursday, April 23rd. Jefferies Financial Group lifted their price objective on shares of Lam Research from $285.00 to $315.00 and gave the company a “buy” rating in a research note on Thursday, April 23rd. Finally, Evercore restated an “outperform” rating and set a $355.00 target price on shares of Lam Research in a research report on Monday, July 20th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, Lam Research currently has an average rating of “Moderate Buy” and a consensus price target of $363.37.

Lam Research Stock Performance

The company has a 50-day moving average price of $342.02 and a two-hundred day moving average price of $274.96. The stock has a market capitalization of $337.17 billion, a P/E ratio of 50.87, a PEG ratio of 1.81 and a beta of 1.80. The company has a quick ratio of 1.77, a current ratio of 2.54 and a debt-to-equity ratio of 0.35.

Lam Research Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 8th. Investors of record on Wednesday, June 17th were paid a dividend of $0.26 per share. The ex-dividend date of this dividend was Wednesday, June 17th. This represents a $1.04 annualized dividend and a yield of 0.4%. Lam Research’s payout ratio is currently 19.62%.

Insider Buying and Selling

In related news, SVP Neil J. Fernandes sold 7,659 shares of the company’s 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 owned 58,470 shares of the company’s stock, valued at approximately $18,102,312. This represents a 11.58% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric Brandt sold 54,500 shares of the firm’s stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $350.80, for a total transaction of $19,118,600.00. Following the completion of the transaction, the director directly owned 199,205 shares of the company’s stock, valued at approximately $69,881,114. The trade was a 21.48% decrease in their ownership of the stock. 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. In the last 90 days, insiders have sold 98,611 shares of company stock valued at $32,250,190. Company insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Lam Research

A number of institutional investors have recently added to or reduced their stakes in LRCX. Brighton Jones LLC boosted its position in shares of Lam Research by 1,032.4% during the 4th quarter. Brighton Jones LLC now owns 14,189 shares of the semiconductor company’s stock valued at $1,025,000 after acquiring an additional 12,936 shares during the last quarter. Caxton Associates LLP bought a new position in shares of Lam Research in the first quarter worth approximately $239,000. Gabelli Funds LLC purchased a new stake in Lam Research in the second quarter valued at approximately $253,000. NewEdge Advisors LLC lifted its position in Lam Research by 2.7% during the second quarter. NewEdge Advisors LLC now owns 100,528 shares of the semiconductor company’s stock valued at $9,785,000 after purchasing an additional 2,661 shares during the last quarter. Finally, Osterweis Capital Management Inc. lifted its position in Lam Research by 5,206.7% during the second quarter. Osterweis Capital Management Inc. now owns 796 shares of the semiconductor company’s stock valued at $77,000 after purchasing an additional 781 shares during the last quarter. 84.61% of the stock is currently owned by institutional investors.

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.