Lam Research (NASDAQ:LRCX) Stock Price Down 4.6% – Should You Sell?

Lam Research Corporation (NASDAQ:LRCX) fell 4.6% on Friday . The company traded as low as $301.67 and last traded at $305.21. Approximately 9,241,526 shares traded hands during mid-day trading, a decline of 18% from the average daily volume of 11,250,373 shares. The stock had previously closed at $319.78.

Lam Research News Roundup

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

• Positive Sentiment: Lam Research is expected to benefit from strong demand for AI chips and rising DRAM spending, which could support a potential earnings beat and improve sentiment ahead of results. Article Title
• Positive Sentiment: Wall Street is closely tracking key operating metrics, not just revenue and EPS, suggesting investors are focused on whether Lam Research can show healthy underlying business momentum in the June quarter. Article Title
• Positive Sentiment: The company’s recent role as a founding partner in the AI Materials Foundry keeps Lam Research tied to the broader AI infrastructure theme, which remains a major long-term driver for semiconductor equipment names. Article Title
• Neutral Sentiment: Analysts are publishing pre-earnings previews and forecast updates for Lam Research’s upcoming report, but these articles mostly reflect expectations rather than new company-specific developments. Article Title
• Neutral Sentiment: Semiconductor stocks have outperformed in 2026, but the group is pulling back this month as investors take profits and reprice valuations after a sharp AI-driven rally. Article Title
• Negative Sentiment: Some commentary argues Lam Research could be “dead money” over the next few years, reflecting valuation and return concerns that may be weighing on the stock. Article Title

Wall Street Analysts Forecast Growth

A number of research firms have commented on LRCX. B. Riley Financial lifted their target price on Lam Research from $350.00 to $375.00 and gave the stock a “buy” rating in a report on Tuesday, May 12th. Seaport Research Partners began coverage on Lam Research in a research report on Monday, May 4th. They set a “buy” rating and a $300.00 price objective on the stock. Weiss Ratings downgraded Lam Research from a “buy (b)” rating to a “buy (b-)” rating in a report on Thursday, May 14th. Barclays reaffirmed an “overweight” rating and set a $335.00 price target (up from $275.00) on shares of Lam Research in a report on Thursday, June 11th. Finally, Wells Fargo & Company reiterated an “overweight” rating and issued a $450.00 price target (up from $365.00) on shares of Lam Research in a research note on Monday, June 22nd. One analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, Lam Research has an average rating of “Moderate Buy” and an average target price of $360.51.

Lam Research Price Performance

The firm has a 50 day moving average price of $341.33 and a 200 day moving average price of $273.59. The company has a current ratio of 2.54, a quick ratio of 1.77 and a debt-to-equity ratio of 0.35. The stock has a market capitalization of $381.69 billion, a PE ratio of 57.59, a price-to-earnings-growth ratio of 1.90 and a beta of 1.80.

Lam Research (NASDAQ:LRCX) last posted its quarterly earnings data on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share for the quarter, beating analysts’ consensus estimates of $1.36 by $0.11. The firm had revenue of $5.84 billion for the quarter, compared to analysts’ expectations of $5.70 billion. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.The business’s quarterly revenue was up 23.8% on a year-over-year basis. During the same period in the previous year, the firm earned $1.04 EPS. Research analysts anticipate that Lam Research Corporation will post 5.68 earnings per share for the current year.

Lam Research Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 8th. Shareholders of record on Wednesday, June 17th were issued a dividend of $0.26 per share. The ex-dividend date of this dividend was Wednesday, June 17th. This represents a $1.04 annualized dividend and a yield of 0.3%. Lam Research’s payout ratio is currently 19.62%.

Insider Activity

In other Lam Research news, Director Abhijit Y. Talwalkar sold 18,282 shares of the company’s stock in a transaction that occurred on Monday, July 13th. The shares were sold at an average price of $335.00, for a total value of $6,124,470.00. Following the completion of the transaction, the director directly owned 87,142 shares in the company, valued at $29,192,570. This represents a 17.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric Brandt sold 54,500 shares of the stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $350.80, for a total transaction of $19,118,600.00. Following the completion of the sale, the director directly owned 199,205 shares of the company’s stock, valued at approximately $69,881,114. This trade represents a 21.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 104,621 shares of company stock worth $33,804,737 over the last ninety days. Company insiders own 0.31% of the company’s stock.

Institutional Trading of Lam Research

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. State Street Corp boosted its stake in Lam Research by 0.4% in the 3rd quarter. State Street Corp now owns 59,817,352 shares of the semiconductor company’s stock worth $8,024,684,000 after purchasing an additional 265,805 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Lam Research by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 33,747,368 shares of the semiconductor company’s stock worth $5,764,117,000 after buying an additional 126,613 shares in the last quarter. Invesco Ltd. lifted its holdings in shares of Lam Research by 7.7% in the fourth 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 in the last quarter. Norges Bank bought a new position in shares of Lam Research during the fourth quarter worth $3,645,427,000. Finally, Price T Rowe Associates Inc. MD boosted its position in shares of Lam Research by 352.2% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 13,695,210 shares of the semiconductor company’s stock worth $2,344,347,000 after acquiring an additional 10,666,540 shares during the last quarter. Institutional investors own 84.61% of the company’s stock.

About Lam Research

Lam Research Corporation (NASDAQ: LRCX) is a global supplier of wafer fabrication equipment and services to the semiconductor industry. Founded in 1980 by David K. Lam and headquartered in Fremont, California, the company develops and manufactures systems used in multiple stages of semiconductor device production, including thin film deposition, plasma etch, wafer cleaning and related process modules and automation.

Lam’s product portfolio covers core process technologies employed by logic and memory manufacturers, with equipment designed to support advanced-node patterning, 3D NAND and other emerging device architectures.