Lam Research (NASDAQ:LRCX) Stock Falls 3.3% – Time to Sell?

Lam Research Corporation (NASDAQ:LRCX)’s share price traded down 3.3% on Thursday. The stock traded as low as $266.12 and last traded at $277.46. 13,294,979 shares changed hands during trading, an increase of 25% from the average session volume of 10,672,452 shares. The stock had previously closed at $286.92.

Key Lam Research News

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

Analysts Set New Price Targets

A number of analysts have recently issued reports on the company. UBS Group dropped their target price on Lam Research from $435.00 to $425.00 and set a “buy” rating on the stock in a research report on Tuesday, September 1st. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $320.00 price target on shares of Lam Research in a report on Thursday, July 30th. Morgan Stanley restated an “overweight” rating and set a $385.00 price objective (up from $367.00) on shares of Lam Research in a research note on Monday, October 5th. TD Cowen restated a “buy” rating and set a $400.00 price objective (up from $340.00) on shares of Lam Research in a research note on Thursday, July 9th. Finally, Zacks Research upgraded Lam Research from a “hold” rating to a “strong-buy” rating in a report on Friday, July 17th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, Lam Research has a consensus rating of “Moderate Buy” and a consensus price target of $364.59.

Lam Research Stock Down 4.9%

The firm has a market capitalization of $330.30 billion, a price-to-earnings ratio of 45.82, a P/E/G ratio of 1.10 and a beta of 1.85. The stock has a 50 day moving average of $309.03 and a 200 day moving average of $308.04. The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.30.

Lam Research (NASDAQ:LRCX) last announced its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share for the quarter, beating the consensus estimate of $1.69 by $0.13. Lam Research had a return on equity of 67.60% and a net margin of 31.27%. The firm had revenue of $6.72 billion during the quarter, compared to analyst estimates of $6.66 billion. During the same period in the previous year, the company earned $1.33 earnings per share. Lam Research’s quarterly revenue was up 30.0% on a year-over-year basis. 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 company also recently declared a quarterly dividend, which was paid on Wednesday, October 14th. Investors of record on Wednesday, September 23rd were given a dividend of $0.33 per share. The ex-dividend date of this dividend was Wednesday, September 23rd. This represents a $1.32 annualized dividend and a dividend yield of 0.5%. This is an increase from Lam Research’s previous quarterly dividend of $0.26. Lam Research’s dividend payout ratio is currently 22.92%.

Insider Buying and Selling at Lam Research

In other Lam Research 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 transaction of $1,512,300.00. Following the completion of the sale, the insider owned 42,462 shares in the company, valued at $12,843,056.52. The trade was a 10.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 9,557 shares of the stock in a transaction on Wednesday, September 9th. The stock was 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 trade represents a 31.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.31% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Van ECK Associates Corp raised its stake 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 acquiring an additional 8,922,854 shares during the period. Bank of New York Mellon Corp acquired a new position in Lam Research in the second quarter valued at approximately $3,777,585,000. Corient Private Wealth LLC grew its holdings in shares of Lam Research by 235.5% during the fourth quarter. Corient Private Wealth LLC now owns 5,199,441 shares of the semiconductor company’s stock valued at $890,040,000 after purchasing an additional 3,649,553 shares during the last quarter. Jennison Associates LLC grew its holdings in shares of Lam Research by 296.9% during the first quarter. Jennison Associates LLC now owns 3,373,306 shares of the semiconductor company’s stock valued at $720,740,000 after purchasing an additional 2,523,351 shares during the last quarter. Finally, Assenagon Asset Management S.A. grew its holdings in shares of Lam Research by 1,994.3% during the first quarter. Assenagon Asset Management S.A. now owns 2,116,233 shares of the semiconductor company’s stock valued at $452,154,000 after purchasing an additional 2,015,188 shares during the last quarter. 84.61% of the stock is currently owned by institutional investors.

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.