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Atlatl Advisers LLC decreased its holdings in shares of Lam Research Corporation (NASDAQ:LRCX – Free Report) by 89.8% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 1,646 shares of the semiconductor company’s stock after selling 14,564 shares during the quarter. Atlatl Advisers LLC’s holdings in Lam Research were worth $541,000 as of its most recent SEC filing.

Other institutional investors also recently bought and sold shares of the company. World Equity Group Inc. increased its holdings 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 valued at $2,416,000 after acquiring an additional 29 shares during the last quarter. Vann Equity Management LLC lifted its position in Lam Research by 1.1% during the 3rd quarter. Vann Equity Management LLC now owns 2,873 shares of the semiconductor company’s stock worth $944,000 after acquiring an additional 31 shares during the last quarter. Tenzing Financial LLC boosted its holdings in Lam Research by 3.5% during the second quarter. Tenzing Financial LLC now owns 1,018 shares of the semiconductor company’s stock valued at $441,000 after acquiring an additional 34 shares during the period. Advus Financial Partners LLC boosted its holdings in Lam Research by 1.0% during the second quarter. Advus Financial Partners LLC now owns 3,578 shares of the semiconductor company’s stock valued at $1,550,000 after acquiring an additional 34 shares during the period. Finally, Paragon Private Wealth Management LLC grew its position in shares of Lam Research by 1.3% in the second 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 during the last quarter. 84.61% of the stock is currently owned by institutional investors.

Insiders Place Their Bets In related news, insider Ava Harter sold 5,000 shares of the firm’s stock in a transaction on Monday, August 31st. The stock was sold at an average price of $302.46, for a total value of $1,512,300.00. Following the completion of the transaction, the insider directly owned 42,462 shares of the company’s stock, valued at $12,843,056.52. This trade represents a 10.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 9,557 shares of Lam Research 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 owned 20,995 shares in the company, valued at $6,607,966.30. This represents a 31.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.31% of the company’s stock.

Lam Research Trading Down 0.0% Shares of LRCX opened at $230.10 on Friday. Lam Research Corporation has a 12-month low of $135.50 and a 12-month high of $438.50. The company has a quick ratio of 1.91, a current ratio of 2.48 and a debt-to-equity ratio of 0.27. The firm has a market capitalization of $287.95 billion, a price-to-earnings ratio of 34.29, a P/E/G ratio of 0.83 and a beta of 1.85. The stock’s 50-day moving average price is $301.90 and its 200 day moving average price is $309.32. Lam Research (NASDAQ:LRCX – Get Free Report) last posted its quarterly earnings results on Wednesday, October 21st. The semiconductor company reported $2.20 EPS for the quarter, beating the consensus estimate of $2.18 by $0.02. Lam Research had a return on equity of 72.15% and a net margin of 32.34%. The firm had revenue of $8.22 billion during the quarter, compared to analysts’ expectations of $8.14 billion. During the same quarter in the prior year, the firm posted $1.26 EPS. The company’s revenue for the quarter was up 54.4% on a year-over-year basis. As a group, research analysts predict that Lam Research Corporation will post 9.48 earnings per share for the current year.

Lam Research Increases Dividend The company also recently announced a quarterly dividend, which was paid on Wednesday, October 14th. Investors of record on Wednesday, September 23rd were paid a $0.33 dividend. The ex-dividend date was Wednesday, September 23rd. This is a positive change from Lam Research’s previous quarterly dividend of $0.26. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.6%. Lam Research’s dividend payout ratio is currently 22.92%.

Analysts Set New Price Targets A number of equities analysts have recently commented on LRCX shares. Berenberg Bank set a $420.00 price objective on Lam Research in a research note on Wednesday, September 9th. Fundamental Research set a $390.00 target price on Lam Research in a research note on Thursday, October 1st. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $375.00 price target on shares of Lam Research in a research report on Monday. Jefferies Financial Group set a $335.00 price target on Lam Research and gave the stock a “buy” rating in a report on Thursday, July 30th. Finally, HSBC reissued a “hold” rating and issued a $333.00 price objective on shares of Lam Research in a research report on Monday, July 27th. 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 stock. According to MarketBeat.com, Lam Research has an average rating of “Moderate Buy” and a consensus price target of $354.55.

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

Positive Sentiment: Record results and strong profitability: Fiscal first-quarter revenue rose 54.4% year over year to $8.22 billion, exceeding estimates, while adjusted EPS of $2.20 also beat forecasts. Operating margin topped 40% for the first time, supported by strong systems sales, memory demand and record foundry revenue. Lam Research Q1 Earnings Beat on Systems Sales and Margin Gains Positive Sentiment: Long-term AI and memory demand remains supportive: Lam expects wafer-fabrication-equipment spending to exceed $200 billion in 2027, driven by AI infrastructure, memory upgrades and advanced manufacturing. Customer Support revenue is expected to grow more than 30%, while Aether dry-resist revenue is projected to reach $2.5 billion cumulatively. LRCX Q1 Earnings Call Highlights Positive Sentiment: Some analysts remain bullish: Mizuho reiterated an Outperform rating and recommended buying the pullback, while Bank of America maintained a Buy rating. Erste Group also modestly increased its FY2027 and FY2028 EPS estimates. Mizuho recommends buying the pullback Neutral Sentiment: Guidance was broadly in line but leaves limited room for disappointment: Fiscal second-quarter revenue guidance of $8.2 billion-$9.0 billion and EPS guidance of $2.18-$2.48 bracket consensus estimates of $8.5 billion and $2.30, respectively. Mizuho trimmed its price target to $360 from $365, signaling continued upside but greater near-term caution. Negative Sentiment: Supply bottlenecks are limiting shipments: Component shortages and cleanroom capacity constraints could restrict equipment deliveries through 2027, preventing Lam from fully converting strong demand into revenue. Lam Research says supply bottlenecks are holding back revenue Negative Sentiment: China exposure and sector pressure are weighing on sentiment: China’s revenue contribution is expected to decline substantially from 35% in the September quarter. Citi warned of additional downside for Lam and peers, while a broad AI-chip sell-off amplified concerns about valuations and spending. Lam Research Profile (Free Report)

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.

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Axxcess Wealth Management LLC decreased its stake in shares of Lam Research Corporation (NASDAQ: LRCX) by 49.4% during the undefined quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 13,687 shares of the semiconductor company's stock after selling 13,343 shares during

Lam Research Today

$229.80 -31.01 (-11.89%)

As of 03:54 PM Eastern

This is a fair market value price provided by Massive. Learn more.

$135.50▼

$438.500.57%

39.59

$354.55

Lam Research NASDAQ: LRCX reported its fiscal first-quarter 2027 results after the close on Wednesday, Oct. 21, covering the quarter that ended in September.

Now, on paper, it was one of the strongest quarters in the company's history.

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But the headline beat was arguably always going to be the easy story. As one of the world's largest makers of tools used to build semiconductors, Lam sees chipmakers' capital-spending plans before most of the market does.

That makes what it said about industry spending far more useful than any single quarter's earnings per share.

A Record Quarter, and a Cautious ReactionThe company posted record revenue of $8.22 billion, up 22% from the prior quarter and 54% from a year ago, ahead of analysts' roughly $8.14 billion estimate. Non-GAAP earnings came in at a record $2.20 per share, above the $2.18 estimate. Non-GAAP gross margin hit a record 52.4%, and non-GAAP operating margin reached 40.2%, topping 40% for the first time. Free cash flow also set a record at $3.24 billion.

Even so, shares fell nearly 8% in premarket trading the next morning. Of course, the timing of the report didn't help. The report landed just days after chip stocks snapped an eight-session losing streak in the Philadelphia Semiconductor Index, its longest since 2008, before weakening again in Thursday's premarket session. When record results meet broad-based selling and overall poor sentiment around the AI narrative, it often suggests expectations had already run up a long way.

The Number That Actually MattersFor the broader chip group, though, the most important figure was Lam's forecast for wafer fabrication equipment (WFE) spending. This is a calendar-year, industry-wide estimate of how much chipmakers and semiconductor companies plan to spend on the machines that make chips, and it should be kept separate from Lam's own fiscal-quarter results.

Lam now expects calendar 2026 WFE spending in the mid-$150 billion range, up from the low-$150 billion range it cited previously. More notably, it gave a preliminary calendar 2027 outlook of more than $200 billion, with growth led by DRAM, followed by leading-edge foundry and logic, then NAND.

That speaks directly to the question hanging over the sector: has AI-spending anxiety reached equipment orders? Based on Lam's outlook, not yet. For other equipment makers and the chipmakers placing orders, a higher 2026 estimate and a sharp step up for 2027 are about as clear a signal as the industry gets that capital spending plans remain intact.

One potential caveat, though, is worth noting. Management flagged that component shortages and clean-room space limits could delay some shipments. In other words, demand currently looks bigger than the industry's capacity to fulfill it. That's a better problem than weak demand, but it can still make quarterly results bumpy across the group.

Memory, China, and Capital ReturnsLam Research MarketRank™ Stock Analysis4.988692297455 of 5 stars

100th Percentile

Moderate Buy

51.8% Upside

Healthy

Strong

0.91 Selling Shares

22.25%

See Full Analysis

Memory made up 46% of systems revenue, matching the prior quarter as a percentage but reaching a record in dollar terms, up 120% from a year ago. For memory chipmakers, that confirms they are still spending aggressively to add capacity, which supports the broader memory upcycle even after the group's recent sell-off.

China contributed 35% of revenue, up from 26% in the June quarter. Management expects that share to fall significantly in the December quarter. For the equipment group, that's a reminder that China demand remains lumpy and exposed to policy risk.

Lam also repurchased nearly $1 billion of stock and paid $325 million in dividends during the quarter. That steady, not aggressive, pace reflects strong cash generation while leaving room to invest in capacity, a balance many peers are also trying to strike as spending rises.

What It Signals for the GroupLooking ahead, Lam guided December-quarter revenue to about $8.6 billion, another step higher. Taken together, the higher 2026 WFE forecast, the $200 billion-plus 2027 preview, and record memory demand offer a meaningful counterpoint to the fear that has weighed on chip stocks for weeks.

None of that removes the risks, though. Valuations across the group have run a long way; China remains a swing factor, and supply constraints could cause uneven quarters. But on the question that matters most for the AI buildout—whether chipmakers are still committing capital—Lam's outlook suggests the answer remains yes.

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Lam Research Corp. (NASDAQ:LRCX) posted upbeat first-quarter fiscal 2027 results after Wednesday's closing bell.

Bank of America expects several chipmakers to gain from continued AI infrastructure investment, arguing that cheaper-to-access AI models may still require substantial computing resources as adoption expands.

The bank named Nvidia
NVDA -4.24% 96

, Intel
INTC -7.48% 69

, Marvell Technology
MRVL -9.05% 74

, Micron Technology
MU -6.26% 94

, Lam Research (LRCX) and Synopsys
SNPS -3.68% 93

among the companies that could benefit. Analyst Vivek Arya said wider use of open-weight models does not necessarily mean lower demand for computing hardware.

Open-weight systems let developers access a model's underlying parameters, but operating those models still requires computing power. Arya also argued that these systems can increase overall AI usage rather than simply replace services from proprietary model providers.

Bank of America estimates that cloud infrastructure spending could reach about $1 trillion in 2026, up from roughly $510 billion in 2025, with another 37% increase possible in 2027. The bank also pointed to rising token usage, a measure of the volume of AI processing, as evidence of expanding workloads.

As competition intensifies, major AI developers may invest in larger training processes and more complex reasoning capabilities. That could sustain demand for chips and related equipment even if open models put pressure on the economics of AI software providers.

Check the Warning Signs for

NVDA

now!

Lam Research stock LRCX fell 10% on Thursday despite the chip-equipment maker reporting record fiscal first-quarter results, as supply constraints threatened to limit shipments and the company warned of a decline in revenue from China.

Revenue reached $8.22 billion in the quarter, beating the consensus estimate of $8.14 billion and marking a fifth consecutive quarterly record.

Sales increased 54% from a year earlier and 22% sequentially. Adjusted earnings per share rose to a record $2.20, above analysts’ expectations of $2.18.

Profitability also improved, with gross margin rising to 52.4% from 52% in the June quarter.

Operating margin climbed to 40.2% from 38.4%, crossing the 40% threshold for the first time.

Lam generated record free cash flow of $3.24 billion and ended the quarter with $7.5 billion in cash and short-term investments, compared with $5.6 billion in June.

The company repurchased $1 billion in shares and paid $325 million in dividends.

Lam forecast December-quarter revenue of $8.6 billion, plus or minus $400 million, and adjusted earnings of $2.33 per share, plus or minus $0.15.

The earnings forecast was slightly above the consensus estimate of $2.32.

Gross and operating margins are expected to reach 52.5% and 40.5%, respectively, each with a margin of error of one percentage point.

However, CFO Doug Bettinger said the outlook would have been stronger without supply chain constraints.

“I would mention that this revenue guide would have been a bit higher if not for some near-term supply chain constraints that we are actively managing,” he said.

Bettinger declined to confirm an analyst’s estimate that the constraints would affect revenue by $300 million to $400 million, but said shipments delayed from December would move into March.

CEO Tim Archer said some suppliers were facing demand growth that exceeded the pace of Lam’s own business.

The company is working with suppliers to expand capacity and would consider investments if necessary.

“For those of us who were around during the COVID shortages, this is nothing like that. We learned a lot of lessons during that period,” Archer said.

“I think we’ll be caught up very shortly.”

China accounted for 35% of Lam’s September-quarter revenue, up from 26% in June. The company expects that contribution to fall substantially in the December quarter.

“I expect that in December we’ll be meaningfully down, driven by the domestic customers in China,” Bettinger said.

Multinational customers operating in China are expected to remain reasonably strong, although the CFO did not quantify the anticipated overall decline.

He also expects mature-node spending outside China to strengthen in 2027, with little meaningful growth this year.

Cantor Fitzgerald maintains bullish viewCantor Fitzgerald argued investors may be focusing on the wrong numbers.

Analyst CJ Muse maintained an Overweight rating and a $500 price target in a note published Thursday, an over 110% upside from Thursday's trading levels.

Lam also remains on the firm’s “Top Pick” list.

“Lam delivered a solid beat for the September Q results, and December Q guide a touch above consensus,” Muse said.

“We would note the guide came in below more bullish expectations coming into the print – thus the modest sell-off,” he added.

According to Cantor, some investors had discussed numbers as high as $8.9 billion, “a figure we viewed as impossible.”

Lam Research shattered its own operating margin record and delivered the strongest quarter in company history, yet investors sent the stock tumbling nearly 8% after hours. The selloff raises a pointed question about what Wall Street actually wanted.

Lam Research (NASDAQ:LRCX | LRCX Price Prediction) CFO Doug Bettinger told analysts on October 21, 2026, that operating margin had “exceeded 40% for the first time in our history.” A few hours later, the stock was sliding in after-hours trading.

Shares closed the regular session at $260.81, down 1.00%. By 7:59 PM ET, they had fallen to $241.57, down 7.38% after hours. The regular session on Thursday, October 22, had not opened as of this writing.

Lam set records for revenue, margins and earnings, but its December-quarter outlook only matched expectations. For a stock up 80.64% over the past year, investors had likely expected guidance above consensus.

Record September Quarter Proves Operating Leverage
Revenue reached $8.22 billion. That was up 22% from $6.72 billion in the June quarter and up 54% from $5.32 billion a year earlier. Non-GAAP EPS of $2.20 beat consensus by 1.05%, and GAAP EPS was $2.19.

GAAP operating margin rose to 40.0% from 37.4% in June. Non-GAAP operating margin rose to 40.2% from 38.4%, and non-GAAP gross margin hit a record 52.4%.

Revenue grew faster than costs, so each extra dollar of sales brought in more profit, which is known as operating leverage. CEO Tim Archer said, “operational execution helped Lam deliver record revenue, profit, and earnings per share in the September quarter.”

In-Line December Guide Gave Sellers an Opening
Lam guided December-quarter revenue to $8.6 billion plus or minus $400 million and EPS to $2.33 plus or minus $0.15. Investing.com’s analyst consensus stood at $8.538 billion and $2.32. The midpoints barely cleared that Investing.com consensus, while the lows of $8.2 billion and $2.18 fell below it.

Lam expects operating margin of 40.5% and gross margin of 52.5%, each plus or minus 1 point. Bettinger said that means margin should “expand slightly.”

Bettinger said the guide “would have been a bit higher if not for some near-term supply chain constraints that we are actively managing.”

Several factors likely pressed. The guidance ranges were wide, supply was limited, and the past year’s run had extended the valuation.

China Pullback Meets a Memory-Led 2027
Bettinger said China contributed 35% of revenue, up from 26% in the June quarter. He expects China’s share to be “meaningfully down” in December. That cuts near-term revenue, but it also reduces Lam’s exposure to export-control risk.

Archer put 2026 wafer fab equipment spending in the mid-$150 billion range. Archer’s preliminary 2027 outlook is more than $200 billion, with growth led by DRAM, then leading-edge foundry logic and NAND.

The memory-led expansion feeding Lam’s 2027 outlook is one piece of a much larger AI data-center spend, and the suppliers delivering the power, cooling, and networking around those chips are a less-crowded way to play it (we rounded up seven of them in a free report here: 7 Stocks Powering the AI Boom (That Aren’t Chipmakers)).

A memory-led cycle suits Lam because its etch and deposition tools are used heavily to make memory chips. Archer warned that limited clean room space and shortages of certain components will cap how much 2027 demand gets met.

What Investors Should Watch After the LRCX Selloff
The selloff leaves the earnings case intact. The forward P/E of 26 is well below the trailing 39, which means earnings are expected to keep climbing. The December guide also calls for higher margins.

Lam returned cash in the September quarter. It spent about $1.02 billion on buybacks and paid $325 million in dividends.

Supply constraints could last longer than Archer’s prediction that Lam will be “caught up very shortly,” and a weaker China mix could hurt more than guided. Both risks are more likely to delay revenue than lose it, because shipments missed in December move into the March quarter.

The test is the January call, when Archer said Lam will have stronger 2027 detail. This view is wrong if December-quarter revenue comes in below the $8.2 billion low end or Archer’s more-than-$200 billion outlook gets cut.

Contact [email protected] for any questions or corrections.

Revenue: $8.22 billion, up 22% sequentially and 54% year-over-year; fifth consecutive quarter of record revenue.Gross Margin: Record 52.4%, up from 52% in the J

Lam Research Corporation ( LRCX ) Q1 2027 Earnings Call October 21, 2026 5:00 PM EDT Company Participants Ram Ganesh - Vice President of Investor Relations Timothy Archer - President, CEO & Director Douglas Bettinger - Executive VP & CFO Conference Call Participants Timothy Arcuri - UBS Investment Bank, Research Division Melissa Weathers - Deutsche Bank AG, Research Division Sreekrishnan Sankarnarayanan - TD Cowen, Research Division Harlan Sur - JPMorgan Chase & Co, Research Division Srinivas Pajjuri - RBC Capital Markets, Research Division Vivek Arya - BofA Securities, Research Division Atif Malik - Citigroup Inc., Research Division James Schneider - Goldman Sachs Group, Inc., Research Division Stacy Rasgon - Bernstein Institutional Services LLC, Research Division Blayne Curtis - Jefferies LLC, Research Division Shane Brett - Morgan Stanley, Research Division Vijay Rakesh - Mizuho Securities USA LLC, Research Division Brian Chin - Stifel, Nicolaus & Company, Incorporated, Research Division Presentation Operator Good day, and welcome to the Lam Research Corporation September 2026 Earnings Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions.

From High Dividend Growth to High Yield, These 3 Stocks Just Boosted Dividend PayoutsLam Research NASDAQ: LRCX reported record revenue, profitability and earnings per share for its September 2026 quarter, as demand tied to artificial intelligence, advanced semiconductor manufacturing and packaging continued to support spending on deposition and etch equipment.

Revenue for the September quarter totaled $8.22 billion, up 22% sequentially and 54% from the same period in 2025, Chief Financial Officer Doug Bettinger said. The company recorded a gross margin of 52.4%, an operating margin of 40.2% and diluted non-GAAP earnings per share of $2.20, all records. Operating margin exceeded 40% for the first time, according to the company.

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Analysts Just Raised Price Targets On These 3 Semiconductor Equipment Stocks“In the September quarter, Lam again delivered record revenue and profitability,” President and Chief Executive Officer Tim Archer said. He said AI-driven semiconductor demand and rising device complexity were increasing the intensity of deposition and etch processes across memory, logic and advanced-packaging applications.

December Outlook and WFE Forecast
For the December 2026 quarter, Lam forecast revenue of $8.6 billion, plus or minus $400 million. The company expects gross margin of 52.5%, plus or minus one percentage point; operating margin of 40.5%, plus or minus one percentage point; and earnings per share of $2.33, plus or minus $0.15.

Why Lam Research Still Looks Like a Buy After a 300% RallyBettinger said the December revenue outlook would have been “a little bit higher” without near-term supply-chain constraints. He did not quantify the impact, but said shipments delayed from the December period because of timing would move into the March quarter.

Lam expects calendar-year 2026 wafer-fabrication equipment, or WFE, spending to be in the mid-$150 billion range. Its preliminary forecast for 2027 calls for more than $200 billion in WFE spending, with percentage growth led by DRAM, followed by leading-edge foundry logic and NAND.

Archer said clean-room availability and supply constraints for certain components may limit the industry’s ability to fully meet demand in 2027. The company is working with suppliers to expand capacity, he said, and expects to improve the supply situation shortly. Bettinger added that Lam expects 10 new Tier 1 fabs to come online during 2027.

At the midpoint of its December-quarter outlook, Lam expects calendar-year 2026 systems revenue to grow more than 40% year over year. Archer said the company expects 2026 to be its third consecutive year of WFE outperformance, supported by growth in Lam’s served available market and product share gains.

Memory and Foundry Demand Drive Growth
Memory represented 46% of September-quarter systems revenue, unchanged from the prior quarter, while foundry accounted for 46%, up from 44%. Logic and other applications represented 8% of systems revenue.

Memory systems revenue reached a record dollar level and increased 120% from a year earlier. NAND accounted for 26% of systems revenue, compared with 23% in the June quarter, as customers continued converting to 256-layer and higher-class devices. NAND revenue rose about 40% sequentially, and Lam said it is seeing initial spending on 384-layer-class devices.

DRAM revenue also reached a record, with spending focused on technology additions and upgrades at the 1α, 1β and 1γ nodes for DDR5, LPDDR5 and high-bandwidth memory. Archer said Lam expects etch and deposition intensity to increase as DRAM architectures become more three-dimensional.

The company also discussed potential new NAND demand related to AI storage tiers. Archer said QLC NAND supports cost-effective data storage, TLC is used for higher-bandwidth context-memory and key-value-cache workloads, and SLC-class NAND is emerging for low-latency access in agentic AI applications.

Lam said shifting NAND production from TLC to SLC-class devices reduces bits per device by roughly three times. For every one-percentage-point shift of NAND bits toward SLC-class devices, about 2% more installed wafer capacity would be needed to support the same bit demand, according to the company.

Technology Investments and Advanced Packaging
Archer said foundry logic and DRAM accounted for about 80% of Lam’s systems-revenue growth year to date. The company highlighted demand for its Akara etch, conductor etch and Aether dry-resist products in advanced patterning applications.

Lam said its Aether dry-resist solution has demonstrated sub-10-nanometer resolution with High-NA EUV and can reduce exposure dose by 10%. Aether products are ramping in high-volume HBM manufacturing using Low-NA EUV, Archer said. Lam now expects cumulative Aether-related revenue to reach about $2.5 billion by the end of the decade, approximately $1 billion above its previous expectation.

The company also cited opportunities in backside power delivery, where it has secured tool-of-record wins for four products at a leading customer. In advanced packaging, Lam said its Syndion etch product won four new positions across multiple customers for advanced logic and HBM through-silicon-via applications.

Lam expects advanced-packaging revenue to grow about 70% during calendar 2026. Archer said panel-level packaging is an emerging growth opportunity, with Lam having shipped panel plating systems to more than 20 customers globally. The company expects to achieve panel-level packaging market share exceeding its position in current wafer-level packaging.

Regional Mix, Services and Capital Returns
China represented 35% of September-quarter revenue, up from 26% in the June quarter, due to investments from domestic and multinational customers. Bettinger said China’s contribution is expected to be significantly lower in the December quarter, primarily due to lower domestic-customer revenue, while multinational demand in the region should remain reasonably strong.

Korea accounted for 20% of revenue and Taiwan contributed 18%. Lam’s Customer Support Business Group generated nearly $2.5 billion in revenue, its fourth consecutive quarterly record and a 40% increase from a year earlier. The company expects full-year 2026 CSBG revenue growth of more than 30%, followed by growth of more than 15% in 2027.

Lam generated record free cash flow of $3.24 billion in the September quarter. It repurchased about $1 billion of shares and paid $325 million in dividends, returning roughly 41% of quarterly free cash flow to shareholders. The company ended the quarter with $7.5 billion in cash and short-term investments and $3 billion remaining under its authorized share-repurchase program.

About Lam Research (NASDAQ:LRCX)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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Investors now have their first round of Mag 7 earnings with Meta Platforms (META) beating Wall Street estimates and doubling down on AI endeavors. Tesla (TSLA) beat but took a hit in its energy business.

, /PRNewswire/ -- Lam Research Corporation (the "Company," "Lam," "Lam Research") today announced financial results for the quarter ended September 27, 2026 (the "September 2026 quarter").

Highlights for the September 2026 quarter were as follows:

Revenue of $8.22 billion.
U.S. GAAP gross margin as a percent of revenue of 52.3%, U.S. GAAP operating margin as a percent of revenue of 40.0%, and U.S. GAAP diluted EPS of $2.19.
Non-GAAP gross margin as a percent of revenue of 52.4%, non-GAAP operating margin as a percent of revenue of 40.2%, and non-GAAP diluted EPS of $2.20.

Key Financial Data for the Quarters Ended

September 27, 2026 and June 28, 2026

(in thousands, except per share data, percentages, and basis points)  

U.S. GAAP

September 2026

June 2026

Change Q/Q

Revenue

$       8,219,418

$       6,722,238

+22 %

Gross margin

52.3 %

51.7 %

+ 60 bps

Operating margin

40.0 %

37.4 %

+ 260 bps

Diluted EPS

$                2.19

$                1.81

+ 21 %

Non-GAAP

September 2026

June 2026

Change Q/Q

Revenue

$       8,219,418

$       6,722,238

+22 %

Gross margin

52.4 %

52.0 %

+ 40 bps

Operating margin

40.2 %

38.4 %

+ 180 bps

Diluted EPS

$                2.20

$                1.82

+ 21 %

U.S. GAAP Financial Results

For the September 2026 quarter, revenue was $8.22 billion, gross margin was $4.30 billion, or 52.3% of revenue, operating expenses were $1.02 billion, operating margin was 40.0%, and net income was $2.75 billion, or $2.19 per diluted share on a U.S. GAAP basis. This compares to revenue of $6.72 billion, gross margin of $3.48 billion, or 51.7% of revenue, operating expenses of $965.3 million, operating margin of 37.4%, and net income of $2.28 billion, or $1.81 per diluted share, for the quarter ended June 28, 2026 (the "June 2026 quarter").

Non-GAAP Financial Results

For the September 2026 quarter, non-GAAP gross margin was $4.31 billion, or 52.4% of revenue, non-GAAP operating expenses were $1.00 billion, non-GAAP operating margin was 40.2%, and non-GAAP net income was $2.77 billion, or $2.20 per diluted share. This compares to non-GAAP gross margin of $3.50 billion, or 52.0% of revenue, non-GAAP operating expenses of $916.4 million, non-GAAP operating margin of 38.4%, and non-GAAP net income of $2.28 billion, or $1.82 per diluted share, for the June 2026 quarter.

"With AI driving higher semiconductor demand and greater device complexity, our focus on operational execution helped Lam deliver record revenue, profit, and earnings per share in the September quarter," said Tim Archer, Lam Research's President and Chief Executive Officer. "Our strategic investments in technology inflections and manufacturing capacity are paying off, strengthening our ability to outgrow the wafer fabrication equipment market as the industry expands."

Balance Sheet and Cash Flow Results

Cash, cash equivalents, and restricted cash balances increased to $7.45 billion at the end of the September 2026 quarter compared to $5.60 billion at the end of the June 2026 quarter. The increase was primarily the result of cash generated from operating activities during the quarter partially offset by cash deployed for capital return activities and capital expenditures.

Deferred revenue at the end of the September 2026 quarter increased to $2.66 billion compared to $2.43 billion as of the end of the June 2026 quarter. Lam's deferred revenue balance does not include shipments to customers in Japan, to whom control does not transfer until customer acceptance. Shipments to customers in Japan are classified as inventory at cost until the time of acceptance. The estimated future revenue from shipments to customers in Japan was approximately $468.3 million as of September 27, 2026 and $490.2 million as of June 28, 2026.

Revenue

The geographic distribution of revenue during the September 2026 quarter is shown in the following table:

Region

Revenue

China

35 %

Korea

20 %

Taiwan

18 %

Japan

9 %

United States

8 %

Southeast Asia

6 %

Europe

4 %

The following table presents revenue disaggregated between systems and customer support-related revenue:

Three Months Ended

September 27,
2026

June 28,
2026

September 28,
2025

(in thousands)

Systems revenue

$         5,732,907

$         4,249,848

$         3,547,565

Customer support-related revenue and other

2,486,511

2,472,390

1,776,608

$         8,219,418

$         6,722,238

$         5,324,173

Systems revenue includes sales of new leading-edge equipment in deposition, etch, clean, and other wafer fabrication markets.

Customer support-related revenue includes sales of customer services, spares, upgrades, and non-leading-edge equipment from our Reliant® product line.

Outlook

For the quarter ending December 27, 2026, Lam is providing the following guidance: 

U.S. GAAP

Reconciling Items

Non-GAAP

Revenue

$8.60 Billion

+/-

$400 Million

—

$8.60 Billion

+/-

$400 Million

Gross margin

52.5 %

+/-

1 %

$  2.7

Million

52.5 %

+/-

1 %

Operating margin

40.5 %

+/-

1 %

$  3.0

Million

40.5 %

+/-

1 %

Net income per diluted share

$2.33

+/-

$0.15

$  3.3

Million

$2.33

+/-

$0.15

Diluted share count

1.253 Billion

—

1.253 Billion

The information provided above is only an estimate of what the Company believes is realizable as of the date of this release and does not incorporate the potential impact of any business combinations, asset acquisitions, divestitures, restructuring, balance sheet valuation adjustments, financing arrangements, other investments, or other items that may be completed or realized after the date of this release, except as described below. U.S. GAAP to non-GAAP reconciling items provided include only those items that are known and can be estimated as of the date of this release. Actual results will vary from this model and the variations may be material. Reconciling items included above are as follows:

Gross margin - amortization related to intangible assets acquired through certain business combinations, $2.7 million.

Operating margin - amortization related to intangible assets acquired through certain business combinations, $3.0 million.

Net income per diluted share - amortization related to intangible assets acquired through certain business combinations, $3.0 million; amortization of note discounts, $0.5 million; and associated tax benefit for non-GAAP items ($0.2 million); totaling $3.3 million.

Use of Non-GAAP Financial Results

In addition to U.S. GAAP results, this press release also contains non-GAAP financial results. The Company's non-GAAP results for both the September 2026 and June 2026 quarters exclude amortization related to intangible assets acquired through certain business combinations, the effects of elective deferred compensation-related assets and liabilities, amortization of note discounts, and the net income tax effect of non-GAAP items. The September 2026 quarter also excludes the net income tax effect of a change in tax law, and the June 2026 quarter excludes workforce optimization charges and the related income tax effect.

Management uses non-GAAP gross margin, operating expense, operating income, operating margin, net income, and net income per diluted share to evaluate the Company's operating and financial results. The Company believes the presentation of non-GAAP results is useful to investors for analyzing business trends and comparing performance to prior periods, along with enhancing investors' ability to view the Company's results from management's perspective. Tables presenting reconciliations of non-GAAP results to U.S. GAAP results are included at the end of this press release and on the Company's website at https://investor.lamresearch.com. 

Caution Regarding Forward-Looking Statements

Statements made in this press release that are not of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning: our outlook and guidance for future financial results, including revenue, gross margin, operating margin, net income per diluted share, and diluted share count; AI-driven semiconductor demand and device complexity; our focus on operational execution; the perceived benefits of our strategic investments; our ability to outgrow the wafer fabrication equipment market as the industry expands; and deferred revenue. These statements are not a guarantee of future performance and involve a number of risks, uncertainties, and other factors that could cause our actual results or outcomes, or the timing of our results or outcomes, to differ materially from those expressed or implied in this press release. Such risks, uncertainties, and other factors include: our assumptions related to continued expansion of the wafer fabrication equipment market, growth of deposition and etch intensity, and scaling of our operations may prove invalid; business, economic, political, and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy, including wafer fabrication equipment spending or demand related to AI, may deteriorate or change; the actions, performance, or investment levels of our customers and competitors may be inconsistent with our expectations; customer and product mix, including across market segments and geographical regions, may change; we may be unable to realize the value of our products and technology, successfully commercialize new products and technologies, implement pricing initiatives, or execute on perceived opportunities; we may be unable to achieve anticipated operational, manufacturing, supply chain, procurement, and scale efficiencies; customer technology transitions, capacity expansions, and fab construction projects may have different timing or be less successful than we expect; we may be unable to manage operating expenses effectively while continuing to invest in research and development, product innovation, customer support, and future growth opportunities; trade regulations, export controls (including entity listings, end use/user controls, technology controls, and foreign direct product rules), tariffs, trade disputes, and other geopolitical developments may inhibit our ability to sell our products or services; supply chain cost increases, tariffs, and other inflationary pressures may continue to impact our profitability; supply chain disruptions or manufacturing capacity constraints may limit our ability to manufacture and sell our products; natural and human-caused disasters, disease outbreaks, war, terrorism, political or governmental unrest or instability, or other events beyond our control may impact our operations and revenue in affected areas; as well as the other risks and uncertainties that are described in the documents filed or furnished by us with the Securities and Exchange Commission, including specifically the "Risk Factors" described in our most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. You should evaluate all forward-looking statements made in this press release in the context of these risks, uncertainties, and other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are based on our current beliefs, expectations, and assumptions about future events. Except as required by law, we undertake no obligation to update the information or statements made in this press release.

Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. Lam's equipment and services allow customers to build smaller and better performing devices. In fact, today, nearly every advanced chip is built with Lam technology. We combine superior systems engineering, technology leadership, and a strong values-based culture, with an unwavering commitment to our customers. Lam Research (Nasdaq: LRCX) is a FORTUNE 500® company headquartered in Fremont, Calif., with operations around the globe. Learn more at www.lamresearch.com. (LRCX)

Condensed Consolidated Financial Tables Follow.

LAM RESEARCH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data and percentages)

(unaudited) 

Three Months Ended

September 27,
2026

June 28,
2026

September 28,
2025

Revenue

$ 8,219,418

$ 6,722,238

$ 5,324,173

Cost of goods sold

3,920,565

3,243,498

2,639,294

Gross margin

4,298,853

3,478,740

2,684,879

Gross margin as a percent of revenue

52.3 %

51.7 %

50.4 %

Research and development

666,398

642,922

576,446

Selling, general and administrative

348,728

322,330

279,345

Total operating expenses

1,015,126

965,252

855,791

Operating income

3,283,727

2,513,488

1,829,088

Operating margin

40.0 %

37.4 %

34.4 %

Other income (expense), net

28,493

41,654

30,074

Income before income taxes

3,312,220

2,555,142

1,859,162

Income tax expense

(559,082)

(277,860)

(290,502)

Net income

$ 2,753,138

$ 2,277,282

$ 1,568,660

Net income per share:

Basic

$        2.20

$        1.82

$        1.24

Diluted

$        2.19

$        1.81

$        1.24

Number of shares used in per share calculations:

Basic

1,250,883

1,251,286

1,264,446

Diluted

1,255,768

1,256,032

1,269,313

Cash dividend declared per common share

$        0.33

$        0.26

$        0.26

LAM RESEARCH CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

September 27,
2026

June 28,
2026

September 28,
2025

(unaudited)

(1)

(unaudited)

ASSETS

Cash and cash equivalents

$      7,437,384

$      5,579,171

$      6,693,046

Accounts receivable, net

5,658,379

5,339,682

3,633,034

Inventories

4,550,544

4,276,111

4,095,054

Prepaid expenses and other current assets

477,805

415,741

385,580

Total current assets

18,124,112

15,610,705

14,806,714

Property and equipment, net

3,126,029

2,956,472

2,510,531

Goodwill and intangible assets

1,911,547

1,895,859

1,826,950

Other assets

3,191,368

3,066,707

2,756,016

Total assets

$    26,353,056

$    23,529,743

$    21,900,211

LIABILITIES AND STOCKHOLDERS' EQUITY

Current portion of long-term debt and finance lease obligations

$           3,486

$           4,073

$        754,363

Other current liabilities

7,309,013

5,933,176

5,953,547

Total current liabilities

7,312,499

5,937,249

6,707,910

Long-term debt and finance lease obligations

3,731,958

3,730,490

3,729,580

Income taxes payable

684,273

681,197

646,044

Other long-term liabilities

715,852

709,886

623,925

Total liabilities

12,444,582

11,058,822

11,707,459

Stockholders' equity (2)

13,908,474

12,470,921

10,192,752

Total liabilities and stockholders' equity

$    26,353,056

$    23,529,743

$    21,900,211

(1)

Derived from audited financial statements.

(2)

Common shares issued and outstanding were 1,249,145 as of September 27, 2026, 1,251,278 as of June 28, 2026, and 1,259,176 as of September 28, 2025.

LAM RESEARCH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, unaudited)

Three Months Ended

September 27,
2026

June 28,
2026

September 28,
2025

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$     2,753,138

$     2,277,282

$     1,568,660

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

122,072

119,642

101,644

Deferred income taxes

(55,300)

(175,752)

(62,875)

Equity-based compensation expense

114,696

103,985

97,241

Other, net

27,633

(8,006)

(1,890)

Changes in operating assets and liabilities

535,413

(859,923)

76,184

Net cash provided by operating activities

3,497,652

1,457,228

1,778,964

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures and intangible assets

(257,697)

(188,801)

(185,121)

Other, net

(9,292)

45,060

(927)

Net cash used for investing activities

(266,989)

(143,741)

(186,048)

CASH FLOWS FROM FINANCING ACTIVITIES:

Principal payments on debt, including finance lease obligations and payments for debt issuance costs

(34,489)

(1,355)

(1,417)

Treasury stock purchases, including excise tax payments

(1,024,965)

(246,560)

(975,791)

Dividends paid

(325,402)

(325,318)

(291,981)

Reissuance of treasury stock related to employee stock purchase plan

—

88,780

—

Proceeds from issuance of common stock, net of issuance costs

4,263

4,426

—

Other, net

(1,786)

(282)

(12,449)

Net cash used for financing activities

(1,382,379)

(480,309)

(1,281,638)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

4,663

(2,056)

(7,059)

Net change in cash, cash equivalents, and restricted cash

1,852,947

831,122

304,219

Cash, cash equivalents, and restricted cash at beginning of period (1)

5,597,943

4,766,821

6,407,656

Cash, cash equivalents, and restricted cash at end of period (1)

$     7,450,890

$     5,597,943

$     6,711,875

(1)

Restricted cash is reported within Other assets in the Condensed Consolidated Balance Sheets.

Non-GAAP Financial Summary

(in thousands, except percentages and per share data)

(unaudited)

Three Months Ended

September 27,
2026

June 28,
2026

Revenue

$     8,219,418

$     6,722,238

Gross margin

$     4,305,019

$     3,497,336

Gross margin as a percent of revenue

52.4 %

52.0 %

Operating expenses

$     1,004,280

$        916,420

Operating income

$     3,300,739

$     2,580,916

Operating margin

40.2 %

38.4 %

Net income

$     2,768,417

$     2,279,968

Net income per diluted share

$              2.20

$              1.82

Shares used in per share calculation - diluted

1,255,768

1,256,032

Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income

(in thousands, except per share data)

(unaudited) 

Three Months Ended

September 27,
2026

June 28,
2026

U.S. GAAP net income

$       2,753,138

$       2,277,282

Pre-tax non-GAAP items:

Amortization related to intangible assets acquired through certain business combinations - cost of goods sold

2,668

2,668

Elective deferred compensation ("EDC") related liability valuation increase - cost of goods sold

3,498

15,379

Workforce optimization charges - cost of goods sold

—

549

EDC related liability valuation increase - research and development

6,299

27,682

Workforce optimization charges - research and development

—

960

Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative

348

348

EDC related liability valuation increase - selling, general and administrative

4,199

18,454

Workforce optimization charges - selling, general and administrative

—

1,388

Amortization of note discounts - other income (expense), net

508

504

Gain on EDC related asset - other income (expense), net

(12,870)

(61,325)

Net income tax benefit on non-GAAP items

(825)

(3,921)

Income tax expense from a change in tax law

11,454

—

Non-GAAP net income

$       2,768,417

$       2,279,968

Non-GAAP net income per diluted share

$                2.20

$                1.82

U.S. GAAP net income per diluted share

$                2.19

$                1.81

U.S. GAAP and non-GAAP number of shares used for per diluted share calculation

1,255,768

1,256,032

Reconciliation of U.S. GAAP Gross Margin, Operating Expenses and Operating Income to Non-GAAP Gross Margin,
Operating Expenses and Operating Income

(in thousands, except percentages)

(unaudited) 

Three Months Ended

September 27,
2026

June 28,
2026

U.S. GAAP gross margin

$     4,298,853

$     3,478,740

Pre-tax non-GAAP items:

Amortization related to intangible assets acquired through certain business combinations

2,668

2,668

EDC related liability valuation increase

3,498

15,379

Workforce optimization charges

—

549

Non-GAAP gross margin

$     4,305,019

$     3,497,336

U.S. GAAP gross margin as a percent of revenue

52.3 %

51.7 %

Non-GAAP gross margin as a percent of revenue

52.4 %

52.0 %

U.S. GAAP operating expenses

$     1,015,126

$        965,252

Pre-tax non-GAAP items:

Amortization related to intangible assets acquired through certain business combinations

(348)

(348)

EDC related liability valuation increase

(10,498)

(46,136)

Workforce optimization charges

—

(2,348)

Non-GAAP operating expenses

$     1,004,280

$        916,420

U.S. GAAP operating income

$     3,283,727

$     2,513,488

Non-GAAP operating income

$     3,300,739

$     2,580,916

U.S. GAAP operating margin

40.0 %

37.4 %

Non-GAAP operating margin

40.2 %

38.4 %

Lam Research Corporation Contacts:
Ram Ganesh, Investor Relations, phone: 510-572-1615, e-mail: [email protected]

SOURCE Lam Research Corporation

Lam Research Corporation (NASDAQ:LRCX) will release its first-quarter earnings report after the closing bell on Wednesday, Oct. 21.

CrowdStrike generates revenue primarily through tiered, module-based software subscriptions, offering flexible consumption models like Falcon Flex, while increasingly diversifying its revenues through professional incident response services, managed security operations, and AI-driven threat intelligence. Microsoft's stock gapped up ~16% on its earnings announcement that showed accelerating Azure and Microsoft 365 revenue growth. Credo pioneered Active Electrical Cables (AECs), embedding its low-power digital signal processor technology inside copper cables to deliver superior signal integrity over longer distances, at a fraction of the cost, power, and failure rates as optical solutions.

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Lam Research (LRCX - Free Report) , which belongs to the Zacks Electronics - Semiconductors industry, could be a great candidate to consider.

This semiconductor equipment maker has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 7.89%.

For the most recent quarter, Lam Research was expected to post earnings of $1.69 per share, but it reported $1.82 per share instead, representing a surprise of 7.69%. For the previous quarter, the consensus estimate was $1.36 per share, while it actually produced $1.47 per share, a surprise of 8.09%.

Price and EPS Surprise

Thanks in part to this history, there has been a favorable change in earnings estimates for Lam Research lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Lam Research has an Earnings ESP of +2.25% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on October 21, 2026.

Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Lam Research and Texas Instruments both report after the close on Wednesday, and each faces a different kind of pressure: one must prove AI equipment demand is still accelerating, while the other needs to show its industrial recovery has real…

Two chip stocks from opposite ends of the industry report on Wednesday, October 21, after the market close. Lam Research (NASDAQ:LRCX | LRCX Price Prediction) has to show that AI equipment demand is still accelerating. Texas Instruments (NASDAQ:TXN) has to show that its industrial and auto rebound can last.

Texas Instruments hosts its call at 3:30 p.m. Central time (4:30 p.m. ET). Lam follows at 5:00 p.m. ET.

Texas Instruments Faces a Test of Its Own Guidance
Texas Instruments makes analog chips that handle real-world signals like power and temperature. It also makes embedded processors, the small control chips built into machines. On its prior earnings call, Texas Instruments said revenue rose 13% sequentially and 23% year over year. Industrial, data center, and automotive customers led the growth.

Texas Instruments guided third-quarter revenue to $5.65 billion to $6.15 billion and EPS to $2.23 to $2.57. The consensus EPS estimate of $2.42 falls inside that range, so the fourth-quarter outlook carries more weight. Management said industrial revenue remains below its 2022 peak and customer inventories have not been rebuilt. Auto demand picked up, led by electric vehicles and hybrids in China. Shares are up 59.2% year to date.

Lam Research Rides AI Demand Into Record Guidance
Lam sells deposition and etch tools, the machines that add and carve away thin layers of material on silicon wafers. On its prior earnings call, Lam said it delivered record revenue, operating margin, and earnings per share “as AI-driven demand continues to reshape the semiconductor industry,” positioning it for “a third consecutive year of outperformance in 2026.”

Lam guided September-quarter revenue to $8.1 billion, plus or minus $400 million, and EPS to $2.15 plus or minus $0.15. It also raised its 2026 forecast for wafer fab equipment spending (what the whole industry spends on chipmaking tools) to the low $150 billion range.

In an August 26 Bloomberg Businessweek report, Lam Research said its advanced packaging business is growing more than 70% year over year. Advanced packaging stacks memory and processor chips in three dimensions and wires them together, so AI hardware works like one large system. Lam shares are down 12.1% over the past week and up 59.0% year to date.

Consensus Points to Steep Year-Over-Year Gains

Estimate
Lam Research
Texas Instruments

Current-quarter EPS
$2.18
$2.42

EPS growth vs. prior year
72.8%
63.2%

Current-quarter revenue
$8.1 billion
$5.9 billion

Revenue growth vs. prior year
52.8%
24.6%

Full-year EPS
$9.48 (FY June 2027)
$8.51 (FY 2026)

Full-year revenue
$34.9 billion
$21.9 billion

Chip Shortages Feed Lam’s Order Book
Jim Cramer described the demand picture on October 19, saying CPUs are “going to be in very short supply, which I think is absolutely true because Taiwan Semi can’t make all the ones that they have.” He added, “There’s tremendous demand, and there’s also an inability to build.” On October 9, he said, “Taiwan Semi controlled pretty much any chip stock.”

When chipmakers cannot build fast enough, they add factory capacity, and that means buying more deposition and etch tools from Lam. Lam said the industry remains meaningfully undersupplied, with several new fabs expected to come online by the end of 2027. The same buildout is pulling in power, cooling, and networking suppliers alongside the chipmakers. (We rounded up seven of those names in a free AI infrastructure report.)

What Each Company Must Prove on Wednesday
Texas Instruments needs a fourth-quarter outlook showing that industrial and automotive demand is still climbing. Lam needs revenue close to its $8.1 billion guidance and more detail on 2027, a year management already called a potentially strong setup.

Contact [email protected] for any questions or corrections.

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Semicap equipment basket — buy the relative strength

Buy the semicap equipment peer that holds up best versus LRCX (e.g., ASML or Applied Materials, depending on current relative strength). The thesis is that LRCX’s Wyckoff breakdown is company-specific, while the broader capex/AI cycle still supports the group; you want exposure to the theme without the specific distribution risk.

Key Risk: The whole equipment complex breaks together (capex cuts or AI demand disappointment), dragging the peer down with LRCX.

Lam Research (LRCX) — sell

Sell LRCX. Despite strong fundamentals, the article flags a Wyckoff shift from markup into markdown/distribution, with the stock already down ~40% from its high. That pattern often keeps pressure on until a clear bottom forms, so you fade the “earnings will be great” narrative into the next leg down (possible retest toward ~$200).

Key Risk: Earnings/guidance and AI demand re-accelerate enough to flip the chart back into accumulation, triggering a fast short-covering rally.

Lam Research stock has been in a strong freefall this month. It dropped to $263, its lowest level since July 29, and 40% below its highest point this year. This sell-off may continue this week as jitters surrounding the artificial intelligence continues and as it publishes its financial results. 

Lam Research is a top company in the semiconductor industry that manufactures equipment used in the chip-making industry. It focuses on areas like etching, deposition, cleaning and stripping, and advanced packaging. 

Its technology is widely used in the making of DRAM, NAND, high-bandwidth memory and logic chips. As a result, it counts companies like Samsung Electronics, SK Hynix, Micron Technologies, and TSMC as its biggest customers. 

As such, since these companies are seeing strong revenue growth, chances are that its revenue growth continued soaring in the third quarter. The most recent results showed that its revenue soared to $6.7 billion from $5.8 billion in the March quarter. Its gross margin continued rising, reaching 51.7%. 

Most of its revenue was from Taiwan, followed by China, South Korea, and Japan. While it is an American company, the US revenue accounted for just 9% of its total sales, a notable thing since the US has a small market share in chip manufacturing.

Wall Street analysts are highly optimistic about the company’s growth. The average estimate is that its third-quarter revenue rose to $8.13 billion, up by 52% from the same period last year. 

This growth will be followed by another 59% jump in Q4 to $8.52 billion. If this is correct, its annual growth rate will be 50% to $34.2 billion. Chances are high that Lam Research’s revenue will be higher than expected. Indeed, Morgan Stanley analysts predicted that the company’s guidance for the fourth quarter will be $9 billion. 

Analysts are bullish on Lam Research, pointing to its strong revenue and profitability growth and its market share in the industry. Morgan Stanley recently hiked its target from $367 to $385, while Fundamental Research and B. Riley boosted it to $390. Berenberg analysts predict that the stock will hit $420, while UBS has a target of $425.

The general view is that its revenue and profits will justify its valuation, which has moderated a bit recently. Its forward price-to-earnings ratio stands at 27, slightly higher than the five-year average of 25.

LRCX stock chart | Source: TradingView

The daily chart shows that the LRCX stock remained in a narrow range for several years. This consolidation was part of the accumulation phase of the Wyckoff Theory. It then moved to the markup phase starting from early this year. This phase is usually characterized by higher demand from investors and speculators. 

Now, there are signs that the stock has moved to the markdown and distribution phases. Therefore, there is a risk that Lam Research will continue falling, potentially to the psychological level of $200, down by 24% from the current level. 

Lam Research gears up for Q1 earnings, with surging AI and memory chip demand, rising DRAM spending and advanced packaging technologies expected to fuel growth.

Banque Pictet & Cie SA grew its stake in Lam Research Corporation (NASDAQ:LRCX – Free Report) by 93.1% in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 130,039 shares of the semiconductor company’s stock after purchasing an additional 62,695 shares during the period. Banque Pictet & Cie SA’s holdings in Lam Research were worth $42,719,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of the stock. State Street Corp grew its stake 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 worth $26,320,468,000 after purchasing an additional 1,545,830 shares in the last quarter. Bank of America Corp DE raised its position in Lam Research by 5.5% during the 2nd quarter. Bank of America Corp DE now owns 11,244,147 shares of the semiconductor company’s stock valued at $4,872,426,000 after purchasing an additional 584,489 shares in the last quarter. Van ECK Associates Corp lifted its holdings in shares of 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 worth $4,805,368,000 after buying an additional 8,922,854 shares during the period. Invesco Ltd. lifted its holdings in shares of Lam Research by 7.7% in the 4th quarter. Invesco Ltd. now owns 22,821,354 shares of the semiconductor company’s stock worth $3,906,559,000 after buying an additional 1,638,406 shares during the period. Finally, Bank of New York Mellon Corp bought a new position in shares of Lam Research during the 2nd quarter worth $3,777,585,000. Hedge funds and other institutional investors own 84.61% of the company’s stock.

Insider Buying and Selling at Lam Research In related news, 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 owned 20,995 shares of the company’s stock, valued at approximately $6,607,966.30. This represents a 31.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Ava Harter sold 5,000 shares of the stock in a transaction that occurred 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 directly 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. 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.

Wall Street Analysts Forecast Growth LRCX has been the topic of several recent research reports. Bank of America increased their target price on shares of Lam Research from $330.00 to $480.00 and gave the stock a “buy” rating in a report on Tuesday, June 23rd. B. Riley Financial boosted their price target on shares of Lam Research from $350.00 to $390.00 and gave the company a “buy” rating in a report on Thursday, October 1st. Cantor Fitzgerald set a $500.00 price target on shares of Lam Research and gave the stock an “overweight” rating in a research report on Monday, June 29th. Berenberg Bank set a $420.00 price target on shares of Lam Research in a research report on Wednesday, September 9th. Finally, Morgan Stanley reiterated 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. One research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $364.59. Check Out Our Latest Stock Analysis on LRCX

Lam Research Stock Performance LRCX opened at $263.94 on Friday. Lam Research Corporation has a 52-week low of $135.50 and a 52-week high of $438.50. The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.30. The company has a market cap of $330.30 billion, a P/E ratio of 45.82, a price-to-earnings-growth ratio of 1.10 and a beta of 1.85. The firm’s 50-day moving average price is $309.03 and its 200-day moving average price is $308.04.

Lam Research (NASDAQ:LRCX – Get Free Report) last issued its earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.69 by $0.13. The company had revenue of $6.72 billion during the quarter, compared to analyst estimates of $6.66 billion. Lam Research had a return on equity of 67.60% and a net margin of 31.27%. The firm’s quarterly revenue was up 30.0% on a year-over-year basis. During the same quarter last year, the business posted $1.33 EPS. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, equities analysts anticipate that Lam Research Corporation will post 9.34 EPS for the current fiscal year.

Lam Research Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 23rd were issued a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date was Wednesday, September 23rd. This is an increase from Lam Research’s previous quarterly dividend of $0.26. Lam Research’s payout ratio is 22.92%.

More 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 About Lam Research (Free Report)

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.

Further Reading Five stocks we like better than Lam Research Bank of America Stock Sell-Off Looks Like a Buying Opportunity AST SpaceMobile Is Down 67%—Could SpaceX’s Mobile Push Deepen the Selloff? GlobalFoundries’ $21 Billion Deal Could Change the Economics of Chipmaking Fundamental and Technicals Signals Align for Costco: Is the Stock Finally Breaking Out? Want to see what other hedge funds are holding LRCX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Lam Research Corporation (NASDAQ:LRCX – Free Report).

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Lam Research (LRCX - Free Report) closed the most recent trading day at $286.92, moving -4.71% from the previous trading session. This change lagged the S&P 500's 1.11% loss on the day. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 1.88%.

Coming into today, shares of the semiconductor equipment maker had gained 11.16% in the past month. In that same time, the Computer and Technology sector gained 3.49%, while the S&P 500 gained 2.06%.

Market participants will be closely following the financial results of Lam Research in its upcoming release. The company plans to announce its earnings on October 21, 2026. The company is predicted to post an EPS of $2.17, indicating a 72.22% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.12 billion, indicating a 52.42% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.34 per share and a revenue of $34.46 billion, indicating changes of +60.76% and +48.34%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Lam Research. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.19% higher. Right now, Lam Research possesses a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Lam Research has a Forward P/E ratio of 32.23 right now. This expresses a discount compared to the average Forward P/E of 36.3 of its industry.

We can also see that LRCX currently has a PEG ratio of 1.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.19 based on yesterday's closing prices.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 40% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Sax Wealth Advisors LLC increased its position in shares of Lam Research Corporation (NASDAQ:LRCX – Free Report) by 138.8% in the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 11,076 shares of the semiconductor company’s stock after purchasing an additional 6,438 shares during the quarter. Sax Wealth Advisors LLC’s holdings in Lam Research were worth $3,638,000 at the end of the most recent reporting period.

A number of other large investors have also recently bought and sold shares of the company. State Street Corp lifted its holdings in shares of Lam Research by 2.6% during the 2nd quarter. State Street Corp now owns 60,704,130 shares of the semiconductor company’s stock worth $26,320,468,000 after acquiring an additional 1,545,830 shares during the period. Invesco Ltd. boosted its position in shares of Lam Research by 7.7% during the 4th quarter. Invesco Ltd. now owns 22,821,354 shares of the semiconductor company’s stock worth $3,906,559,000 after acquiring an additional 1,638,406 shares in the last quarter. Bank of America Corp DE boosted its position in shares of Lam Research by 5.5% during 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 acquiring an additional 584,489 shares in the last quarter. Van ECK Associates Corp boosted its position in shares of Lam Research by 411.8% during the 2nd 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 in the last quarter. Finally, Amundi increased its stake in Lam Research by 23.7% in the first quarter. Amundi now owns 10,147,479 shares of the semiconductor company’s stock valued at $2,168,107,000 after acquiring an additional 1,942,862 shares during the last quarter. 84.61% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets In other news, insider Ava Harter sold 5,000 shares of the stock in a transaction on Monday, August 31st. The stock was sold at an average price of $302.46, for a total value of $1,512,300.00. Following the completion of the transaction, the insider directly owned 42,462 shares in the company, valued at approximately $12,843,056.52. This represents a 10.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through 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 stock in a transaction on 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 transaction, the director owned 20,995 shares of the company’s stock, valued at $6,607,966.30. The trade was a 31.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 0.31% of the company’s stock.

Key Stories Impacting Lam Research Here are the key news stories impacting Lam Research this week: Positive Sentiment: Higher price target: DBS Bank raised its price target for Lam Research to $416, signaling continued confidence in the company’s earnings outlook and potential upside. DBS Bank lifts target to USD 416 for Lam Research stock Positive Sentiment: Improving earnings estimates: Erste Group Bank raised its FY2027 EPS forecast for LRCX to $9.40 from $9.34 and its FY2028 estimate to $11.99 from $11.68. The revisions support the view that demand for wafer-fabrication equipment should remain strong. Positive Sentiment: Constructive outlook ahead of earnings: Analysts expect Lam Research, Texas Instruments and Western Digital to deliver strong results and guidance. Lam’s latest quarter already featured record revenue, operating margin and EPS, while management guided to another strong quarter. Lam Research, TI and Western Digital are likely to post strong results, guidance: UBS Neutral Sentiment: Broad sector profit-taking: Applied Materials, Lam Research and KLA all declined as investors reduced exposure to semiconductor-equipment shares following a substantial AI-fueled advance and ahead of major industry earnings reports. Semiconductor Equipment Stocks Slide as Investors Take Profits on a Huge Year Negative Sentiment: Insider selling: Quiver Quantitative reported 55 insider sales and no insider purchases over the past six months, including sales by CEO Timothy Archer and other senior executives. While such transactions may reflect compensation or diversification, the one-sided pattern can weigh on sentiment. Why Lam Research Stock Is Down Today Lam Research Trading Down 2.7% LRCX opened at $301.11 on Wednesday. The company’s 50 day moving average is $310.95 and its 200-day moving average is $307.35. Lam Research Corporation has a 1-year low of $134.04 and a 1-year high of $438.50. The company has a current ratio of 2.63, a quick ratio of 1.91 and a debt-to-equity ratio of 0.30. The company has a market cap of $376.82 billion, a P/E ratio of 52.28, a PEG ratio of 1.23 and a beta of 1.85.

Lam Research (NASDAQ:LRCX – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.69 by $0.13. The company had revenue of $6.72 billion for the quarter, compared to analyst estimates of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The firm’s revenue was up 30.0% on a year-over-year basis. During the same period in the previous year, the firm posted $1.33 EPS. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. Equities research analysts predict that Lam Research Corporation will post 9.34 earnings per share for the current fiscal year.

Lam Research Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 23rd will be given a $0.33 dividend. This is an increase from Lam Research’s previous quarterly dividend of $0.26. This represents a $1.32 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date is Wednesday, September 23rd. Lam Research’s dividend payout ratio (DPR) is 22.92%.

Analysts Set New Price Targets LRCX has been the subject of several research analyst reports. Evercore restated an “outperform” rating and set a $355.00 price objective on shares of Lam Research in a research report on Monday, July 20th. Morgan Stanley restated an “overweight” rating and set a $385.00 target price (up from $367.00) on shares of Lam Research in a research note on Monday, October 5th. Citigroup reaffirmed a “buy” rating and issued a $450.00 target price (up from $315.00) on shares of Lam Research in a report on Wednesday, June 17th. Weiss Ratings downgraded Lam Research from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, September 4th. Finally, Berenberg Bank set a $420.00 price target on Lam Research in a research note on Wednesday, September 9th. One equities 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 company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $364.59.

View Our Latest Stock Analysis on LRCX

About Lam Research (Free Report)

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.

See Also Five stocks we like better than Lam Research A Chinese Rival Just Spooked Memory Stocks—How Worried Should Micron Investors Be? Could T-Mobile’s Satellite Competition Fears Create a Buying Opportunity? Surgical Precision, Sustainable Returns: Johnson & Johnson Secures Its Cash Flow Runway Tesla’s Robotaxi Lands in Paris—But Europe’s Real Fight Is Over Cheap EVs

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NorthCrest Asset Manangement LLC boosted its position in shares of Lam Research Corporation (NASDAQ: LRCX) by 5.4% during the undefined quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 68,976 shares of the semiconductor company's stock after buying an additional 3,523 shares during the quarter.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Let's take a look at what these Wall Street heavyweights have to say about Lam Research (LRCX - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Lam Research currently has an average brokerage recommendation (ABR) of 1.51, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 34 brokerage firms. An ABR of 1.51 approximates between Strong Buy and Buy.

Of the 34 recommendations that derive the current ABR, 23 are Strong Buy and four are Buy. Strong Buy and Buy respectively account for 67.7% and 11.8% of all recommendations.

Brokerage Recommendation Trends for LRCX

Check price target & stock forecast for Lam Research here>>>

While the ABR calls for buying Lam Research, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is LRCX Worth Investing In?In terms of earnings estimate revisions for Lam Research, the Zacks Consensus Estimate for the current year has increased 0.2% over the past month to $9.34.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Lam Research. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Lam Research may serve as a useful guide for investors.

September-quarter guidance implies roughly 20.5% sequential growth at its midpoint, raising the margin hurdle. Summary

Lam’s approaching earnings must convert AI equipment demand into another operating-leverage gain.

Lam Research LRCX, the semiconductor etching-and-deposition equipment supplier, slipped about 0.2% to $319.94 at 12.09pm EST on October 9 as its next earnings test approached. The company has scheduled its September-quarter conference call for October 21 at 5 p.m. ET. The valuation snapshot puts the stock 102.47% above its $158.02 GF Value™, suggesting investors already expect plenty of growth.

The hurdle is high. Management's guidance calls for $8.1 billion in revenue, plus or minus $400 million—roughly 20.5% above June's $6.72 billion at the midpoint. June also delivered a 52% non-GAAP gross margin, a 38.4% operating margin and $1.82 in adjusted diluted earnings per share. September's outlook raises the operating-margin target to 39.5%. Lam is aiming to grow faster and keep more of each sales dollar.

That makes profitability the real test. Investors need evidence that spending on high-bandwidth memory, advanced logic and packaging can support sustained equipment demand. Hitting the revenue target would be a strong result; meeting the margin target would make it stronger. With the stock carrying such a steep valuation premium, the next quarter's outlook and management's assessment of China-related restrictions could matter just as much as the headline numbers.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

Lam Research turned a modest stake into a life-changing sum over ten years, but the ride included three gut-wrenching collapses that pushed most investors to bail out long before the biggest gains arrived.

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A $1,000 investment in Lam Research (NASDAQ:LRCX | LRCX Price Prediction) made 10 years ago would be worth about $37,462 today, measured through the Oct. 7, 2026 close. Every figure below assumes all dividends were reinvested in more shares. Getting there meant sitting through three separate drops of more than 40%.

Selling the Tools Behind Every Chip Boom Lam makes deposition, etch and clean systems that chipmakers use to build logic, DRAM and 3D NAND chips. Its sales track customer spending on new fab capacity, which moves with memory prices and chip inventories. Over the decade, Lam managed the 3D NAND transition, the 2017-2018 memory supercycle, a 2019 slump, the pandemic boom, a 2022-2023 memory bust with China export curbs, and now AI computing buildout.

AI demand shows up clearly in the results. Fiscal 2026 revenue hit a record $23.23 billion, up 26.0%. Management now expects 2026 industry equipment spending in the “low $150 billion range” and says “The industry is still meaningfully undersupplied.”

Your $1,000 Became $37,462 Lam’s price-only results appear in parentheses. The S&P 500 figures cover price change only.

1-Year Return

Initial Investment: $1,000 Current Value: $2,358.50 ($2,347.77) Total Return: 135.85% S&P 500 (same period): $1,161.60 (16.16%) 5-Year Return

Initial Investment: $1,000 Current Value: $6,297.80 ($5,989.35) Total Return: 529.78% Annualized Return: 44.49% S&P 500 (same period): $1,775 (77.5%, 12.16% annualized) 10-Year Return

Initial Investment: $1,000 Current Value: $37,461.80 ($32,836.07) Total Return: 3,646.18% Annualized Return: 43.67% S&P 500 (same period): $3,614.30 (261.43%, 13.71% annualized) Reinvesting dividends added about $4,626 over 10 years. Lam paid a dividend every quarter, rising from $0.30 in 2016 to $2.30 by September 2024, then $0.23 after the 10-for-1 split on Oct. 3, 2024, now $0.33. Reinvested shares bought during each slump still kept growing.

Based on closing prices, holders sat through a drop of about 50% from December 2021 to September 2022 and a 47% decline from July 2024 to April 2025. They also took a 42% fall between June 30 and July 29, 2026, which came right in the middle of record results.

Key Signals to Watch Before the Next 40% Drop The optimistic outlook holds if AI keeps the industry short on capacity through 2027 and Lam hits its targets of mid-50% gross margin and mid-40% operating margin. September quarter guidance calls for about $8.10 billion in revenue and $2.15 in EPS. The downside case gains weight if AI spending pauses or China export controls tighten. China made up 26% of June-quarter revenue.

Lam’s history carries a lesson for long-term holders. Over this decade, the return went to investors who held a cyclical stock through the whole cycle and kept reinvesting. Anyone who sold during the drawdowns gave up part of that gain (we studied a group of recent runners most investors walked past and pulled out the pattern in a free report: The Winners You Already Missed).

Contact [email protected] for any questions or corrections.