Lam Research (LRCX) AI Stock Analysis

• Market Cap: $216.38B
• Dividend Yield: 0.56%
• Average Volume (3M): 11.37M
• Price to Earnings (P/E): 38.0
• Beta (1Y): 2.06
• 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: 13,206,309
• 30 Day Avg. Volume: 11,372,916
• 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: 0.74
• Enterprise Value/Revenue: 8.20
• Enterprise Value/Gross Profit: 16.63
• Enterprise Value/Ebitda: 22.93
• 1Y Price Target: $176.10
• Price Target Upside: 0.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 22
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $172.00 ▼(-1.86% Downside)

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 designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatments; and VECTOR plasma-enhanced CVD ALD products. It also provides SPEED gapfill high-density plasma chemical vapor deposition products; and Striker single-wafer atomic layer deposition products for dielectric film solutions. In addition, the company offers Flex for dielectric etch applications; Kiyo for conductor etch applications; Syndion for through-silicon via etch applications; and Versys metal products for metal etch processes. Further, it provides Coronus bevel clean products to enhance die yield; Da Vinci, DV-Prime, EOS, and SP series products to address various wafer cleaning applications; and Metryx mass metrology systems for high precision in-line mass measurement in semiconductor wafer manufacturing. The company sells its products and services to semiconductors industry in the United States, China, Europe, Japan, Korea, Southeast Asia, Taiwan, and internationally. Lam Research Corporation was incorporated in 1980 and is headquartered in Fremont, California.

How the Company Makes Money

Lam Research generates revenue primarily through the sale of its semiconductor manufacturing equipment and related services. The company's revenue model is primarily based on two key streams: equipment sales and service agreements. Equipment sales consist of the direct sale of its advanced etching and deposition systems, which are essential for the fabrication of semiconductor wafers. Additionally, Lam Research earns substantial revenue from service agreements, which include maintenance, upgrades, and support services for its equipment installed at customer sites. The company benefits from long-term relationships with major semiconductor manufacturers, which often leads to repeat business and contracts. Furthermore, partnerships with leading technology companies in the semiconductor industry enhance Lam Research's market position and contribute to its earnings through collaborative innovations and shared technology advancements.

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 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.59B	18.44B	14.91B	17.43B	17.23B	14.63B
Gross Profit	9.66B	8.98B	7.05B	7.78B	7.87B	6.81B
EBITDA	7.01B	6.34B	4.91B	5.64B	5.71B	4.89B
Net Income	5.81B	5.36B	3.83B	4.51B	4.61B	3.91B
Balance Sheet
Total Assets	21.90B	21.35B	18.74B	18.78B	17.20B	15.89B
Cash, Cash Equivalents and Short-Term Investments	6.69B	6.39B	5.85B	5.37B	3.66B	5.73B
Total Debt	4.48B	4.76B	4.98B	5.01B	5.01B	5.00B
Total Liabilities	11.71B	11.48B	10.21B	10.57B	10.92B	9.86B
Stockholders Equity	10.19B	9.86B	8.54B	8.21B	6.28B	6.03B
Cash Flow
Free Cash Flow	5.85B	5.41B	4.26B	4.68B	2.55B	3.24B
Operating Cash Flow	6.38B	6.17B	4.65B	5.18B	3.10B	3.59B
Investing Cash Flow	-783.59M	-708.09M	-370.61M	-534.56M	612.27M	73.27M
Financing Cash Flow	-4.96B	-4.94B	-4.00B	-2.83B	-4.58B	-4.17B

Lam Research Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 175.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 175.26 is above the 20-day moving average (MA) of 161.06, above the 50-day MA of 155.07, and above the 200-day MA of 108.72, indicating a bullish trend. The MACD of 4.56 indicates Negative momentum. The RSI at 63.59 is Neutral, neither overbought nor oversold. The STOCH value of 86.43 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	81 Outperform	$405.53B	39.51	51.72%	0.63%	24.91%	39.95%
LRCX	77 Outperform	$216.38B	37.96	62.26%	0.56%	25.66%	46.68%
AMAT	77 Outperform	$203.32B	29.61	35.51%	0.69%	4.47%	0.48%
KLAC	77 Outperform	$163.67B	39.11	99.17%	0.58%	22.27%	45.32%
ASX	69 Neutral	$31.78B	29.18	11.17%	2.32%	8.01%	10.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	57 Neutral	$23.28B	45.39	3.00%	1.28%	-17.33%	-76.71%

Lam Research Corporate Events

Lam Research Approves New Stock Incentive Plan

On November 4, 2025, Lam Research Corporation held its annual meeting of stockholders, where key decisions were made, including the approval of a new equity incentive plan, the 2025 Stock Incentive Plan. Additionally, an amendment to the company’s Restated Certificate of Incorporation was approved, limiting the liability of certain officers as permitted by Delaware law. These changes, along with the election of directors and other proposals, reflect Lam Research’s strategic efforts to enhance corporate governance and align executive compensation with shareholder interests.