Lam Research (NASDAQ:LRCX) Shares Up 3.6% After Earnings Beat

Lam Research Corporation (NASDAQ:LRCX)’s share price traded up 3.6% during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $251.38 and last traded at $248.17. 16,549,562 shares were traded during trading, an increase of 19% from the average session volume of 13,952,390 shares. The stock had previously closed at $239.58.

The semiconductor company reported $1.27 earnings per share for the quarter, beating the consensus estimate of $1.17 by $0.10. The company had revenue of $5.34 billion for the quarter, compared to analyst estimates of $5.23 billion. Lam Research had a net margin of 29.66% and a return on equity of 60.60%. Lam Research’s revenue was up 22.1% on a year-over-year basis. During the same period in the previous year, the business posted $0.91 EPS. Lam Research has set its Q3 2026 guidance at 1.250-1.450 EPS.

Lam Research Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, January 7th. Stockholders of record on Wednesday, December 3rd were paid a $0.26 dividend. This represents a $1.04 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend was Wednesday, December 3rd. Lam Research’s dividend payout ratio is 21.31%.

Key Headlines Impacting Lam Research

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

• Positive Sentiment: Q2 beat and strong Q3 guide — Lam reported $1.27 EPS vs. $1.17 expected and revenue above estimates, then guided Q3 revenue and EPS above consensus, which underpins the rally. PR Newswire: Lam Research Reports Financial Results
• Positive Sentiment: Broad analyst re-ratings — Multiple firms raised price targets and ratings after the results, adding momentum as buy-side models get repriced higher. Benzinga: These Analysts Boost Their Forecasts
• Positive Sentiment: Megabank and boutique upgrades — Notable lifts include JPMorgan, Citi, Needham and TD Cowen boosting targets (several to ~$290–$300), signaling institutional conviction in near-term demand for wafer-fab tools. Benzinga: JPMorgan raises target on Lam
• Positive Sentiment: Bullish media and investor commentary — High-profile bulls (Jim Cramer) and coverage (Barron’s calling results “extraordinarily bullish”) are amplifying optimism around AI/CPU-driven tool demand. InsiderMonkey: Jim Cramer on Lam Barron’s: Lam Earnings Bullish
• Neutral Sentiment: Catalyst vs. cyclicality — Analysts highlight structural AI/foundry demand but also note Lam’s history of volatile drawdowns; the setup is bullish but not immune to cyclic swings. Forbes: Reality Check for LRCX
• Negative Sentiment: Some cautious bench marks — Morgan Stanley moved its target higher but kept an equal-weight rating (implying limited near-term upside from current levels), a reminder some strategists view shares as fairly valued after the rally. Benzinga: Morgan Stanley on Lam

Analyst Upgrades and Downgrades

A number of research analysts have commented on LRCX shares. Morgan Stanley upped their target price on shares of Lam Research from $211.00 to $244.00 and gave the company an “equal weight” rating in a research report on Thursday. KeyCorp restated a “sector weight” rating on shares of Lam Research in a report on Thursday. Rothschild & Co Redburn increased their price objective on shares of Lam Research from $150.00 to $225.00 and gave the stock a “buy” rating in a research report on Tuesday, January 13th. Barclays set a $250.00 target price on Lam Research in a research report on Thursday. Finally, New Street Research raised their price target on Lam Research from $140.00 to $195.00 and gave the stock a “neutral” rating in a research report on Thursday, January 22nd. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat, Lam Research presently has an average rating of “Moderate Buy” and a consensus price target of $234.55.

Insider Buying and Selling

In other news, Director Bethany Mayer sold 1,298 shares of Lam Research stock in a transaction on Monday, November 3rd. The shares were sold at an average price of $159.99, for a total transaction of $207,667.02. Following the completion of the sale, the director directly owned 1,652 shares of the company’s stock, valued at approximately $264,303.48. The trade was a 44.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Douglas R. Bettinger sold 40,080 shares of the stock in a transaction on Friday, November 14th. The shares were sold at an average price of $150.60, for a total value of $6,036,048.00. Following the completion of the transaction, the chief financial officer directly owned 987,237 shares in the company, valued at $148,677,892.20. This trade represents a 3.90% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 41,408 shares of company stock valued at $6,248,501 in the last quarter. 0.31% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. raised its holdings in Lam Research by 0.3% during the third quarter. Vanguard Group Inc. now owns 130,974,214 shares of the semiconductor company’s stock worth $17,537,447,000 after purchasing an additional 364,949 shares in the last quarter. State Street Corp grew its position in shares of Lam Research by 0.4% in the 3rd quarter. State Street Corp now owns 59,817,352 shares of the semiconductor company’s stock valued at $8,024,684,000 after buying an additional 265,805 shares during the last quarter. JPMorgan Chase & Co. raised its stake in Lam Research by 14.4% during the 2nd quarter. JPMorgan Chase & Co. now owns 40,622,437 shares of the semiconductor company’s stock worth $3,954,188,000 after acquiring an additional 5,102,589 shares in the last quarter. Geode Capital Management LLC lifted its position in Lam Research by 3.5% in the second quarter. Geode Capital Management LLC now owns 33,802,736 shares of the semiconductor company’s stock valued at $3,280,484,000 after acquiring an additional 1,135,405 shares during the last quarter. Finally, Invesco Ltd. boosted its stake in Lam Research by 18.2% in the third quarter. Invesco Ltd. now owns 21,182,948 shares of the semiconductor company’s stock valued at $2,836,397,000 after acquiring an additional 3,263,658 shares in the last quarter. Hedge funds and other institutional investors own 84.61% of the company’s stock.

Lam Research Stock Performance

The firm has a fifty day simple moving average of $183.31 and a 200-day simple moving average of $144.37. The company has a market cap of $311.71 billion, a PE ratio of 54.66, a price-to-earnings-growth ratio of 3.01 and a beta of 1.77. The company has a quick ratio of 1.60, a current ratio of 2.21 and a debt-to-equity ratio of 0.37.

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.