Lam Research (NASDAQ:LRCX) Stock Price Down 4.9% – Here’s What Happened

Shares of Lam Research Corporation (NASDAQ:LRCX) fell 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 trading, an increase of 6% from the average daily volume of 10,676,158 shares. The stock had previously closed at $277.46.

Key Stories Impacting Lam Research

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 platform, enabling faster GPU-accelerated wafer-etch modeling. The collaboration could improve chip-design and manufacturing efficiency and strengthen Lam’s position in AI-enabled semiconductor fabrication. Lam Research Ties AI Fab Push To Faster SEMulator3D Modeling
• Positive Sentiment: Analysts continue to see substantial long-term upside, with one consensus target implying approximately 25.6% appreciation and Benzinga’s analyst survey showing an average target near $346. Upward earnings-estimate revisions may provide additional support if the upcoming report confirms strong demand. Wall Street Analysts See a 25.6% Upside
• Positive Sentiment: Twenty-four exchange-traded funds added Lam Research holdings on October 13, indicating continued institutional interest despite the recent pullback. 24 ETFs Add Lam Research Holdings
• Neutral Sentiment: Options markets are pricing in a potentially large post-earnings move, with roughly $28.6 billion of Lam Research exposure tied to the event. This signals heightened volatility rather than a clear bullish or bearish direction. Lam Research Could Swing $28.6 Billion After Earnings
• Neutral Sentiment: The earnings preview focuses on September-quarter revenue, gross margin, and other operating metrics beyond headline EPS and sales estimates. Investors will be watching for evidence that demand from advanced logic, memory, and AI-related customers is accelerating. Lam Research Q1 Earnings Preview
• Negative Sentiment: Lam Research has recorded its longest losing streak since 1984, reflecting weak near-term sentiment and concern that the stock’s premium valuation leaves little room for an earnings disappointment. Lam Research Stock Hits Longest Losing Streak
• Negative Sentiment: Hotter-than-expected inflation data triggered broader selling in semiconductor stocks, as investors worried that persistently high interest rates could restrain AI infrastructure and fab spending. Lam Research declined alongside Lattice Semiconductor, Amkor, Entegris, and MACOM. Semiconductor Stocks Trade Down

Analysts Set New Price Targets

A number of research analysts recently weighed in on the company. HSBC reaffirmed a “hold” rating and set a $333.00 price objective on shares of Lam Research in a report on Monday, July 27th. TD Cowen reaffirmed a “buy” rating and set a $400.00 price target (up from $340.00) on shares of Lam Research in a research note on Thursday, July 9th. Bank of America upped their price target on shares of Lam Research from $330.00 to $480.00 and gave the stock a “buy” rating in a research note on Tuesday, June 23rd. Evercore reiterated an “outperform” rating and issued a $355.00 price target on shares of Lam Research in a report on Monday, July 20th. Finally, Morgan Stanley reaffirmed an “overweight” rating and issued a $385.00 price objective (up from $367.00) on shares of Lam Research in a research note on Monday, October 5th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $364.59.

Lam Research Price Performance

The company has a debt-to-equity ratio of 0.30, a current ratio of 2.63 and a quick ratio of 1.91. The firm has a market capitalization of $330.30 billion, a PE ratio of 45.82, a P/E/G ratio of 1.14 and a beta of 1.85. The company has a 50-day moving average price of $309.98 and a 200-day moving average price of $308.35.

Lam Research (NASDAQ:LRCX) last posted its quarterly earnings data 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 firm had revenue of $6.72 billion during the quarter, compared to analysts’ expectations of $6.66 billion. During the same quarter last year, the business posted $1.33 EPS. The firm’s quarterly 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. Sell-side analysts forecast that Lam Research Corporation will post 9.34 EPS for the current year.

Lam Research Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 23rd were issued a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a dividend 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 presently 22.92%.

Insider Buying and Selling

In related news, Director Bethany Mayer sold 9,557 shares of the firm’s 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 owned 20,995 shares in the company, valued at approximately $6,607,966.30. This trade represents a 31.28% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Ava Harter sold 5,000 shares of Lam Research stock in a transaction that occurred 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 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. 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. Insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Lam Research

A number of large investors have recently bought and sold shares of LRCX. Opal Wealth Advisors LLC boosted its holdings in Lam Research by 165.3% in the third quarter. Opal Wealth Advisors LLC now owns 1,552 shares of the semiconductor company’s stock valued at $510,000 after acquiring an additional 967 shares during the last quarter. Banque Pictet & Cie SA grew its position in Lam Research by 93.1% during the third quarter. Banque Pictet & Cie SA now owns 130,039 shares of the semiconductor company’s stock valued at $42,719,000 after acquiring an additional 62,695 shares during the period. Rise Advisors LLC increased its stake in Lam Research by 12.1% during the third quarter. Rise Advisors LLC now owns 873 shares of the semiconductor company’s stock worth $287,000 after acquiring an additional 94 shares during the last quarter. Eagle Bay Advisors LLC increased its stake in Lam Research by 12.6% during the third quarter. Eagle Bay Advisors LLC now owns 752 shares of the semiconductor company’s stock worth $247,000 after acquiring an additional 84 shares during the last quarter. Finally, Selective Wealth Management Inc. increased its stake in Lam Research by 19.2% during the third quarter. Selective Wealth Management Inc. now owns 1,636 shares of the semiconductor company’s stock worth $537,000 after acquiring an additional 263 shares during the last quarter. Hedge funds and other institutional investors own 84.61% of the company’s stock.

About Lam Research

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.