Lam Research (NASDAQ:LRCX) Shares Gap Up After Earnings Beat

Lam Research Corporation (NASDAQ:LRCX)’s share price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $252.35, but opened at $318.29. Lam Research shares last traded at $301.9360, with a volume of 4,249,799 shares trading hands.

The semiconductor company reported $1.82 earnings per share for the quarter, topping the consensus estimate of $1.69 by $0.13. The firm had revenue of $6.72 billion for the quarter, compared to the consensus estimate of $6.66 billion. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The firm’s revenue for the quarter was up 30.0% on a year-over-year basis. During the same period in the prior year, the firm earned $1.33 EPS. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS.

Lam Research Dividend Announcement

The company also recently announced 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. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date was Wednesday, June 17th. Lam Research’s dividend payout ratio is presently 19.62%.

Key Lam Research News

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

• Positive Sentiment: Quarterly results exceeded expectations: Lam Research reported fiscal fourth-quarter revenue of $6.72 billion, up 30% year over year and ahead of the $6.66 billion consensus estimate. Adjusted earnings of $1.82 per share also beat expectations of $1.69, compared with $1.33 a year earlier. Lam Research Corporation Reports Financial Results
• Positive Sentiment: Strong AI-driven outlook: Management issued first-quarter fiscal 2027 revenue guidance of $7.7 billion to $8.5 billion and adjusted EPS guidance of $2.00 to $2.30. Both ranges are well above Wall Street expectations of approximately $7.0 billion in revenue and $1.81 in EPS, reflecting continued demand for equipment used in advanced chips and AI infrastructure. Lam Research forecasts strong revenue on AI boom
• Positive Sentiment: Analyst support remains favorable: Needham reaffirmed its “Buy” rating and set a $390 price target. Erste Group also raised its fiscal 2027 EPS estimate to $8.05 from $7.98, although it maintained a “Hold” rating.
• Neutral Sentiment: Positive fundamentals are already being judged against elevated expectations: Lam Research’s record results and AI exposure support the long-term growth case, but the stock’s valuation and recent volatility leave investors focused on whether demand can continue accelerating.
• Negative Sentiment: China and sector risks are weighing on sentiment: Concerns about new Chinese lithography capabilities and potential changes in China-related semiconductor-equipment demand have contributed to a broader chip-equipment pullback. Macro uncertainty, interest-rate expectations and geopolitical tensions are adding pressure despite the earnings beat. Lam Research down after China lithography jitters

Analyst Ratings Changes

LRCX has been the subject of several analyst reports. JPMorgan Chase & Co. boosted their price target on shares of Lam Research from $300.00 to $315.00 and gave the stock an “overweight” rating in a report on Thursday, April 23rd. The Goldman Sachs Group reaffirmed a “buy” rating and set a $290.00 price objective on shares of Lam Research in a research report on Thursday, April 23rd. Susquehanna reiterated a “positive” rating and set a $475.00 target price (up from $385.00) on shares of Lam Research in a research note on Tuesday, June 30th. Bank of America increased their target price on Lam Research from $330.00 to $480.00 and gave the company a “buy” rating in a report on Tuesday, June 23rd. Finally, Sanford C. Bernstein raised their price target on Lam Research from $325.00 to $340.00 and gave the company an “outperform” rating in a research note on Thursday, May 21st. One analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Lam Research has a consensus rating of “Moderate Buy” and a consensus target price of $360.71.

Insider Buying and Selling at Lam Research

In related news, Director Eric Brandt sold 54,500 shares of the firm’s stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $350.80, for a total transaction of $19,118,600.00. Following the transaction, the director owned 199,205 shares of the company’s stock, valued at $69,881,114. This trade represents a 21.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Abhijit Y. Talwalkar sold 18,282 shares of the business’s stock in a transaction dated Monday, July 13th. The shares were sold at an average price of $335.00, for a total value of $6,124,470.00. Following the completion of the transaction, the director owned 87,142 shares in the company, valued at $29,192,570. This trade represents a 17.34% decrease in their position. 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. Over the last three months, insiders have sold 98,611 shares of company stock worth $32,250,190. 0.31% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. World Equity Group Inc. boosted its position in shares of Lam Research by 0.5% during the 2nd quarter. World Equity Group Inc. now owns 5,576 shares of the semiconductor company’s stock worth $2,416,000 after purchasing an additional 29 shares in the last quarter. Tenzing Financial LLC lifted its stake in shares of Lam Research by 3.5% in the second 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 period. Gibraltar Capital Management Inc. boosted its holdings in Lam Research by 3.6% during the second quarter. Gibraltar Capital Management Inc. now owns 1,050 shares of the semiconductor company’s stock worth $455,000 after buying an additional 36 shares in the last quarter. Elevated Financial Group LLC boosted its holdings in Lam Research by 3.0% during the second quarter. Elevated Financial Group LLC now owns 1,223 shares of the semiconductor company’s stock worth $530,000 after buying an additional 36 shares in the last quarter. Finally, Yoder Wealth Management Inc. grew its position in Lam Research by 3.3% during the second quarter. Yoder Wealth Management Inc. now owns 1,129 shares of the semiconductor company’s stock worth $489,000 after buying an additional 36 shares during the period. 84.61% of the stock is currently owned by hedge funds and other institutional investors.

Lam Research Stock Performance

The company has a market capitalization of $380.24 billion, a PE ratio of 57.31, a PEG ratio of 1.60 and a beta of 1.80. The stock’s fifty day simple moving average is $341.14 and its 200-day simple moving average is $275.79. The company has a quick ratio of 1.77, a current ratio of 2.54 and a debt-to-equity ratio of 0.35.

About Lam Research

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.