Lam Research (LRCX) AI Stock Analysis

• Market Cap: $201.81B
• Dividend Yield: 0.59%
• Average Volume (3M): 12.15M
• Price to Earnings (P/E): 34.3
• Beta (1Y): 2.04
• Revenue Growth: 25.66%
• EPS Growth: 46.68%
• Country: US
• Employees: 18,600
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.26
• Shares Outstanding: 1,256,030,000
• 10 Day Avg. Volume: 10,798,777
• 30 Day Avg. Volume: 12,149,123
• PEG Ratio: 0.54
• Price to Book (P/B): 12.69
• Price to Sales (P/S): 6.79
• P/FCF Ratio: 23.12
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 8.20
• Enterprise Value/Gross Profit: 16.63
• Enterprise Value/Ebitda: 22.93
• 1Y Price Target: $155.13
• Price Target Upside: -3.65% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 25

• Rating: 77 Outperform
• Price Target: $172.00 ▲(6.83% Upside)

Lam Research's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. Technical indicators support a bullish outlook, though valuation concerns slightly temper the overall score. The company's strategic focus on AI and advanced technologies positions it well for future growth, despite regulatory challenges in China.

Positive Factors

Market Leadership

Lam Research's innovative product offerings and market leadership position it strongly in the semiconductor industry, ensuring sustained demand and competitive advantage.

Revenue Growth

Record revenue growth reflects strong demand for Lam's products and services, supporting long-term business expansion and financial stability.

AI and Advanced Technologies

The focus on AI and advanced technologies positions Lam Research to capitalize on structural industry trends, driving future growth and innovation.

Negative Factors

Regulatory Challenges in China

Regulatory changes in China pose significant risks to Lam's revenue, potentially affecting its market presence and financial performance in a key region.

China Revenue Concentration

High revenue concentration in China exposes Lam Research to geopolitical and regulatory risks, which could impact its long-term revenue stability.

Margin Pressure

Decreasing gross margins due to tariffs and customer mix could pressure profitability, affecting Lam's ability to maintain its financial health over time.

Lam Research Business Overview & Revenue Model

Company Description

Lam Research Corporation (LRCX) is a leading provider of innovative semiconductor manufacturing equipment and services, primarily serving the global semiconductor industry. The company specializes in developing advanced technologies for wafer fabrication, including etch, deposition, and clean technologies. Lam Research's products are critical for the production of integrated circuits used in a wide range of electronic devices, including smartphones, computers, and other digital products. With a focus on enabling the advancement of semiconductor manufacturing processes, Lam Research operates in a sector characterized by rapid innovation and increasing demand for smaller, more powerful chips.

How the Company Makes Money

Lam Research generates revenue primarily through the sale of its semiconductor manufacturing equipment, which includes systems for etching, deposition, and cleaning wafers, as well as related services and parts. The company earns significant income from both new equipment sales and the ongoing service and support of its installed systems, which are essential for maintaining the performance and efficiency of semiconductor production lines. Key revenue streams include system sales, service revenue from maintenance contracts, and aftermarket sales of consumables and spare parts. Strategic partnerships with major semiconductor manufacturers further enhance its market presence and contribute to its earnings, as these collaborations enable Lam Research to tailor its solutions to meet the evolving needs of its customers in a competitive landscape.

Lam Research Financial Statement Overview

Summary

Lam Research demonstrates strong financial health with robust revenue and profit growth, efficient operations, and solid cash flow metrics. The balance sheet shows a stable financial position with manageable leverage and high returns on equity.

Income Statement

Lam Research shows strong income statement performance with a consistent increase in revenue and profit margins. The TTM data indicates a Gross Profit Margin of 49.31% and a Net Profit Margin of 29.66%, both of which are robust for the semiconductor industry. Revenue growth is positive at 6.27% TTM, reflecting a healthy upward trajectory. EBIT and EBITDA margins are also strong, indicating efficient operations.

Balance Sheet

The balance sheet is solid with a manageable Debt-to-Equity Ratio of 0.44 TTM, showing improved leverage compared to previous years. Return on Equity is impressive at 60.57% TTM, highlighting strong profitability. The Equity Ratio stands at 46.55%, indicating a stable financial structure. However, the company should continue to monitor debt levels to maintain financial flexibility.

Cash Flow

Cash flow metrics are positive, with Free Cash Flow Growth at 2.38% TTM, showing improvement. The Operating Cash Flow to Net Income Ratio is 0.95, and the Free Cash Flow to Net Income Ratio is 0.92, indicating good cash conversion efficiency. The company has shown consistent growth in free cash flow, supporting its operational and strategic initiatives.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2020	Dec 2019	Dec 2018
Income Statement
Total Revenue	19.59B	18.44B	14.91B	10.04B	9.65B	11.08B
Gross Profit	9.66B	8.98B	7.05B	4.61B	4.36B	5.17B
EBITDA	7.01B	6.34B	4.91B	3.02B	2.87B	3.54B
Net Income	5.81B	5.36B	3.83B	2.25B	2.19B	2.38B
Balance Sheet
Total Assets	21.90B	21.35B	18.74B	14.56B	12.00B	12.48B
Cash, Cash Equivalents and Short-Term Investments	6.69B	6.39B	5.85B	6.71B	5.43B	4.95B
Total Debt	4.48B	4.76B	4.98B	5.81B	4.49B	2.42B
Total Liabilities	11.71B	11.48B	10.21B	9.38B	7.28B	5.90B
Stockholders Equity	10.19B	9.86B	8.54B	5.18B	4.72B	6.58B
Cash Flow
Free Cash Flow	5.85B	5.41B	4.26B	1.92B	2.87B	2.38B
Operating Cash Flow	6.38B	6.17B	4.65B	2.13B	3.18B	2.66B
Investing Cash Flow	-783.59M	-708.09M	-370.61M	-244.08M	-1.64B	2.75B
Financing Cash Flow	-4.96B	-4.94B	-4.00B	-623.93M	-2.39B	-3.27B

Lam Research Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 161.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LRCX, the sentiment is Positive. The current price of 161.01 is above the 20-day moving average (MA) of 145.94, above the 50-day MA of 127.84, and above the 200-day MA of 94.82, indicating a bullish trend. The MACD of 8.10 indicates Negative momentum. The RSI at 71.77 is Negative, neither overbought nor oversold. The STOCH value of 87.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LRCX.

Lam Research Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASML	―	$414.17B	40.07	51.72%	0.63%	24.91%	39.95%
KLAC	―	$159.92B	38.78	99.17%	0.59%	22.27%	45.32%
LRCX	―	$201.81B	34.29	62.26%	0.59%	25.66%	46.68%
AMD	―	$413.57B	146.69	4.70%	―	27.17%	108.67%
AMAT	―	$185.26B	28.11	35.64%	0.74%	6.70%	-5.95%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INTC	―	$187.56B	2,889.21	0.19%	―	-1.49%	―

Lam Research Corporate Events

Lam Research Corp’s Earnings Call: Record Revenues Amid Challenges

Lam Research Corp’s recent earnings call painted a picture of robust financial performance and strategic positioning, despite facing some regulatory headwinds. The company reported record revenues and strong demand driven by AI and advanced packaging, which are bolstered by significant investments in NAND and DRAM. While challenges such as regulatory impacts in China and tariff pressures exist, the overall sentiment remained positive, emphasizing market leadership and demand growth.

Lam Research Corp: Navigating the Financial Risks of Global Health Crises

Lam Research Corp faces significant risks from epidemics, pandemics, or disease outbreaks, which can severely impact its business operations and financial performance. Governmental measures to control disease spread, such as quarantines and travel bans, can restrict business activities, leading to facility closures, production delays, and supply chain disruptions. These challenges may result in increased costs, reduced revenues, and decreased profitability, potentially causing material adverse effects on the company’s financial results. Additionally, global health crises can disrupt financial markets and economic stability, affecting customer demand and the company’s access to financing.

Lam Research Corp Shines in Earnings Call

Lam Research Corp’s recent earnings call reflected a positive sentiment overall, driven by strong financial performance and technological advancements. The company reported significant growth in the China market and positive trends in advanced packaging and high-bandwidth memory (HBM). However, challenges such as a decline in DRAM revenue, potential tariff headwinds, and uncertainty in long-term wafer fabrication equipment (WFE) spending were also highlighted.

Lam Research Reports Strong Q2 2025 Earnings

Lam Research Corporation is a global leader in the semiconductor industry, providing innovative wafer fabrication equipment and services that enable the production of advanced chips. The company is headquartered in Fremont, California, and is recognized for its superior systems engineering and technology leadership.