Lam Research (NASDAQ:LRCX) Stock Price Up 2.9% – Time to Buy?

Lam Research Corporation (NASDAQ:LRCX) shares were up 2.9% on Tuesday . The company traded as high as $311.39 and last traded at $310.96. Approximately 9,231,983 shares were traded during trading, a decline of 15% from the average daily volume of 10,908,276 shares. The stock had previously closed at $302.28.

Lam Research News Roundup

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

• Positive Sentiment: AI chipmaking demand supports the sector. The planned REX AI Chipmaking ETF will focus on equipment manufacturers that build the machinery used to produce AI chips, potentially directing additional investor attention and fund flows toward Lam Research. New ETF Bets on the Machinery Behind AI Chipmaking
• Positive Sentiment: Lam’s outlook points to strong near-term growth. Its prior earnings materials indicated September-quarter revenue of approximately $8.1 billion, more than 20% above the previous quarter, while 2026 wafer-fabrication equipment spending is expected to reach the low-$150 billion range. These trends reinforce the investment case tied to AI-related chip-capital spending. Why Lam Research Stock Is Up Today
• Positive Sentiment: Margin expansion could improve profitability. Lam is targeting operating margins in the mid-40% range over several years, supported by revenue growth, AI-driven demand and higher-margin services. Analysts have also raised long-term earnings expectations, including an increase to the company’s FY2028 EPS forecast. LRCX Eyes Mid-40s Operating Margin
• Neutral Sentiment: Valuation leaves the shares sensitive to execution. LRCX trades at a high earnings multiple, although the reported consensus price target of approximately $375 remains above the current level. Continued gains will likely depend on Lam converting strong AI-related demand into sustained revenue and margin growth.
• Negative Sentiment: Insider selling is a potential cautionary signal. Reported insider activity over the past six months shows sales without purchases, including transactions by senior executives. The sales may reflect routine compensation or portfolio decisions, but they could temper bullish sentiment.

Wall Street Analyst Weigh In

LRCX has been the topic of several analyst reports. Bank of America increased their price target on Lam Research from $330.00 to $480.00 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. Citigroup reissued a “buy” rating and issued a $450.00 price target (up from $315.00) on shares of Lam Research in a report on Wednesday, June 17th. Jefferies Financial Group set a $335.00 target price on Lam Research and gave the company a “buy” rating in a report on Thursday, July 30th. Stifel Nicolaus raised their price target on shares of Lam Research from $325.00 to $425.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. Finally, Cantor Fitzgerald set a $500.00 price objective on shares of Lam Research and gave the company an “overweight” rating in a report on Monday, June 29th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $361.81.

Lam Research Price Performance

The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.91 and a current ratio of 2.63. The stock has a market cap of $389.11 billion, a PE ratio of 53.99, a PEG ratio of 1.14 and a beta of 1.85. The stock’s 50-day moving average is $305.98 and its two-hundred day moving average is $296.00.

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. Lam Research had a return on equity of 67.60% and a net margin of 31.27%.The company had revenue of $6.72 billion during the quarter, compared to analysts’ expectations of $6.66 billion. During the same period last year, the business posted $1.33 EPS. Lam Research’s revenue for the quarter was up 30.0% on a year-over-year basis. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. On average, equities analysts predict that Lam Research Corporation will post 9.33 earnings per share for the current year.

Lam Research Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 23rd will be issued a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Wednesday, September 23rd. This is a positive change from Lam Research’s previous quarterly dividend of $0.26. Lam Research’s dividend payout ratio (DPR) is 18.06%.

Insider Buying and Selling at Lam Research

In related news, insider Ava Harter sold 5,000 shares of the business’s stock in a transaction on Monday, August 31st. The shares were sold at an average price of $302.46, for a total value of $1,512,300.00. Following the completion of the sale, the insider directly owned 42,462 shares of the company’s stock, valued at $12,843,056.52. The trade was a 10.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 dated 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 completion of the sale, the director directly owned 20,995 shares of the company’s stock, valued at approximately $6,607,966.30. This trade represents a 31.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 32,839 shares of company stock worth $10,644,740 over the last ninety days. Corporate insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Lam Research

Several institutional investors have recently added to or reduced their stakes in the stock. State Street Corp grew its holdings in Lam Research by 2.6% in the second quarter. State Street Corp now owns 60,704,130 shares of the semiconductor company’s stock valued at $26,320,468,000 after purchasing an additional 1,545,830 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of Lam Research by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 33,747,368 shares of the semiconductor company’s stock worth $5,764,117,000 after buying an additional 126,613 shares during the last quarter. Bank of America Corp DE boosted its position in shares of Lam Research by 5.5% in the 2nd quarter. Bank of America Corp DE now owns 11,244,147 shares of the semiconductor company’s stock worth $4,872,426,000 after buying an additional 584,489 shares in the last quarter. Van ECK Associates Corp grew its stake in Lam Research by 411.8% in the 2nd quarter. Van ECK Associates Corp now owns 11,089,395 shares of the semiconductor company’s stock valued at $4,805,368,000 after acquiring an additional 8,922,854 shares during the last quarter. Finally, Invesco Ltd. grew its stake in Lam Research by 7.7% in the 4th quarter. Invesco Ltd. now owns 22,821,354 shares of the semiconductor company’s stock valued at $3,906,559,000 after acquiring an additional 1,638,406 shares during the last quarter. Institutional investors and hedge funds own 84.61% of the company’s stock.

About Lam Research

Lam Research Corporation is a semiconductor equipment company that develops and manufactures systems used in the fabrication of integrated circuits. Its equipment supports key wafer-processing steps, including deposition, etch, wafer cleaning, and related processes used to create and connect the microscopic features found on semiconductor devices.

The company serves semiconductor manufacturers producing a range of products, including memory, logic, and specialty chips. In addition to manufacturing equipment, Lam Research provides installation, maintenance, spare parts, upgrades, technical support, and other services intended to help customers operate and improve their fabrication facilities.

Founded in 1980, Lam Research is headquartered in Fremont, California, and serves customers through a global network of offices, engineering facilities, and support operations.