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Lam Research Corporation (LRCX) is a global leader in semiconductor manufacturing equipment and services. With a market cap of $114.3 billion, it provides cutting-edge wafer fabrication solutions that enable the production of advanced semiconductor devices. The company’s innovative technologies and expertise support the world's leading chipmakers in delivering high-performance electronics, driving progress in computing, artificial intelligence, and mobile applications while creating long-term value for stakeholders.
Shares of the chip giant have underperformed the broader market considerably over the past year. LRCX has declined 1.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 23%. However, in 2025, LRCX’s stock gained 23.3%, compared to SPX’s 4% rise on a YTD basis.
Zooming in further, the Fremont, California-based company has also underperformed the Invesco Semiconductors ETF (PSI), which has risen 18.4% over the past year.
On Jan. 29, Lam Research reported its Q2 earnings, sending shares up 7.4% the next day. The company posted an adjusted EPS of $0.91, beating the analysts' estimate, while revenue reached $4.4 billion, surpassing the consensus. Additionally, Lam's Q3 revenue forecast of $4.7 billion, plus or minus $300 million, exceeded Wall Street's expectations. The company's optimistic outlook, fueled by strong AI-driven demand for advanced chipmaking equipment and high-bandwidth memory (HBM) chips, further boosted investor confidence.
For the current fiscal year, ending in June 2025, analysts expect LRCX’s EPS to grow 24.1% year-over-year to $3.71. The company’s earnings surprise history is promising. It beat the consensus estimate in each of the last four quarters.
Among the 29 analysts covering LRCX stock, the consensus is a “Moderate Buy.” That’s based on 18 “Strong Buy” ratings, two “Moderate Buys,” and nine “Holds.”
This configuration is more bullish than three months ago, with 16 analysts suggesting a “Strong Buy” rating.
On Feb. 20, Mizuho analyst Vijay Rakesh raised Lam Research's price target to $100, maintaining an “Outperform” rating, citing its growing market share in deposition.
As of writing, LRCX is trading below the mean price target of $91.27. The Street-high price target of $110 suggests an ambitious upside potential of 23.6%.
