Lam Research (NASDAQ:LRCX) Stock Falls 4.9% – Should You Sell?

Shares of Lam Research Corporation (NASDAQ:LRCX) dropped 4.9% during mid-day trading on Friday. The company 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.

Lam Research News Summary

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 modeling platform. GPU-accelerated wafer-etch simulations could improve chip-design and manufacturing efficiency, supporting the company’s longer-term role in AI-driven semiconductor fabs. Lam Research Ties AI Fab Push to Faster SEMulator3D Modeling
• Positive Sentiment: Analysts continue to see substantial upside, with Benzinga’s 22-analyst average target near $346 and a separate consensus implying roughly 25.6% potential appreciation. Recent earnings-estimate revisions could provide support if Lam delivers a strong quarterly report. Lam Research Stock Hits Longest Losing Streak Ever Wall Street Analysts See Upside in Lam Research
• Neutral Sentiment: Analysts are previewing the quarter ended September 2026, focusing on operating metrics beyond headline revenue and earnings estimates. The report could produce a significant re-rating depending on guidance and demand commentary. Lam Research Q1 Earnings Preview
• Neutral Sentiment: Options markets are pricing a potentially large post-earnings move—about $28.6 billion in implied market capitalization swing—signaling elevated volatility rather than a clear directional view. Lam Research Could Swing After Earnings
• Negative Sentiment: Hotter-than-expected inflation has renewed fears that higher interest rates could restrain AI infrastructure spending, weighing broadly on semiconductor and equipment stocks, including Lam Research. Semiconductor Stocks Trade Down on Inflation Concerns
• Negative Sentiment: Lam Research was on track for its ninth consecutive decline, its longest losing streak since 1984. The persistent technical weakness may be encouraging selling despite analysts’ bullish price targets. Lam Research Dips More Than the Broader Market

Analyst Upgrades and Downgrades

LRCX has been the subject of several recent research reports. Cantor Fitzgerald set a $500.00 price target on Lam Research and gave the company an “overweight” rating in a report on Monday, June 29th. Mizuho lowered their price objective on Lam Research from $370.00 to $365.00 and set an “outperform” rating on the stock in a research note on Tuesday, August 25th. Stifel Nicolaus boosted their price objective on Lam Research from $325.00 to $425.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. HSBC restated a “hold” rating and issued a $333.00 target price on shares of Lam Research in a report on Monday, July 27th. Finally, B. Riley Financial upped their target price on Lam Research from $350.00 to $390.00 and gave the company a “buy” rating in a report on Thursday, October 1st. 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’s stock. According to MarketBeat.com, Lam Research has an average rating of “Moderate Buy” and an average target price of $364.59.

Lam Research Stock Down 4.9%

The firm has a market capitalization of $330.30 billion, a PE ratio of 45.82, a P/E/G ratio of 1.05 and a beta of 1.85. 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 business’s 50 day moving average price is $309.03 and its 200-day moving average price is $308.04.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 EPS for the quarter, topping 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 for the quarter, compared to analysts’ expectations of $6.66 billion. During the same period in the prior year, the firm earned $1.33 earnings per share. The firm’s revenue was up 30.0% compared to the same quarter last year. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, equities research analysts forecast that Lam Research Corporation will post 9.34 earnings per share for the current year.

Lam Research Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 23rd were paid a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a yield of 0.5%. This is a boost 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 Buying and Selling

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

Institutional Investors Weigh In On Lam Research

Hedge funds have recently bought and sold shares of the stock. World Equity Group Inc. lifted its stake in Lam Research by 0.5% in the second quarter. World Equity Group Inc. now owns 5,576 shares of the semiconductor company’s stock worth $2,416,000 after acquiring an additional 29 shares during the last quarter. Vann Equity Management LLC increased its position in shares of Lam Research by 1.1% in the 3rd quarter. Vann Equity Management LLC now owns 2,873 shares of the semiconductor company’s stock valued at $944,000 after purchasing an additional 31 shares during the last quarter. Tenzing Financial LLC increased its position in shares of Lam Research by 3.5% in the 2nd quarter. Tenzing Financial LLC now owns 1,018 shares of the semiconductor company’s stock valued at $441,000 after purchasing an additional 34 shares during the last quarter. Advus Financial Partners LLC increased its position in shares of Lam Research by 1.0% in the 2nd quarter. Advus Financial Partners LLC now owns 3,578 shares of the semiconductor company’s stock valued at $1,550,000 after purchasing an additional 34 shares during the last quarter. Finally, Paragon Private Wealth Management LLC raised its holdings in shares of Lam Research by 1.3% in the 2nd quarter. Paragon Private Wealth Management LLC now owns 2,719 shares of the semiconductor company’s stock valued at $1,178,000 after purchasing an additional 35 shares in the last quarter. Institutional investors and hedge funds own 84.61% of the company’s stock.

Lam Research Company Profile

Lam Research Corporation (NASDAQ:LRCX) is a semiconductor equipment company that develops and manufactures systems used to fabricate integrated circuits. Its technologies support key stages of wafer processing, helping semiconductor manufacturers create the increasingly complex structures found in memory, logic and other types of chips.

The company’s product portfolio includes etch systems, which selectively remove materials from wafers; deposition systems, which apply thin films; and cleaning solutions used to remove contaminants and residue during manufacturing.