Lam Research (LRCX) AI Stock Analysis

• Market Cap: $122.80B
• Dividend Yield: 0.92%
• Average Volume (3M): 11.78M
• Price to Earnings (P/E): 23.4
• Beta (1Y): 1.93
• Revenue Growth: 23.68%
• EPS Growth: 43.16%
• Country: US
• Employees: 18,600
• Sector: Technology
• Sector Strength: 84
• Industry: Semiconductors
• EPS (TTM): 1.33
• Shares Outstanding: 1,265,621,000
• 10 Day Avg. Volume: 10,438,790
• 30 Day Avg. Volume: 11,776,011
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 6.64
• Enterprise Value/Gross Profit: 13.64
• Enterprise Value/Ebitda: 18.90
• 1Y Price Target: $112.77
• Price Target Upside: 12.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 24

• Rating: 80 Outperform
• Price Target: $115.00 ▲(14.52% Upside)

Lam Research's strong financial performance and positive earnings call are the most significant factors contributing to its high score. The company's robust revenue growth, effective cost management, and strategic focus on advanced technologies position it well in the semiconductor industry. While the technical analysis shows positive trends, potential overbought conditions and moderate valuation metrics slightly temper the overall score.

Positive Factors

Financial Performance

Gross margins at 50.3% reached record levels on favorable mix.

Market Share

LAM has regained market share led by NAND, China, and TSMC.

Negative Factors

China Market Concerns

There are concerns about sustainability, as China's market performance might decline if current strengths are not maintained or are affected by regulatory changes.

Future Growth Outlook

Growth is not expected to sustain into 2026, leading to a challenging setup.

Stock Valuation

The current stock valuation is higher than the historical median, suggesting a premium valuation that may pose risks if growth expectations are not met.

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 exhibits excellent financial health and performance across all verticals. The company shows strong revenue and profit growth, effective cost management, and robust cash flow generation. The balance sheet is healthy with manageable debt levels and strong equity. These metrics highlight Lam Research's strong position in the semiconductor industry, with both operational efficiency and financial stability being key strengths.

Income Statement

Lam Research demonstrates strong revenue and profit growth, with Total Revenue increasing from $14.9B in 2024 to $18.4B in 2025, marking a 23.7% growth rate. Gross Profit Margin remains robust at approximately 48.7% for 2025. The Net Profit Margin improved to 29.1% in 2025 from 25.7% in 2024, indicating enhanced profitability. The EBIT and EBITDA margins are also high at 32% for 2025, reflecting efficient cost management and operational effectiveness.

Balance Sheet

The company maintains a healthy Debt-to-Equity ratio of 0.45 in 2025, showing prudent leverage management. Return on Equity (ROE) is impressive at 54.3%, indicating effective utilization of equity capital to generate profits. The Equity Ratio stands at 46.2%, suggesting a strong equity base supporting the company's asset structure.

Cash Flow

Lam Research's Cash Flow is robust, with Operating Cash Flow increasing significantly by 32.7% from 2024 to 2025. The Free Cash Flow also shows strong growth, improving by 45% in the same period. The Operating Cash Flow to Net Income Ratio is above 1, suggesting efficient conversion of earnings to cash. The Free Cash Flow to Net Income Ratio is also favorable, indicating strong cash generation capabilities relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.44B	18.44B	14.91B	17.43B	17.23B	14.63B
Gross Profit	8.98B	8.98B	7.05B	7.78B	7.87B	6.81B
EBITDA	6.48B	6.34B	4.91B	5.64B	5.71B	4.89B
Net Income	5.36B	5.36B	3.83B	4.51B	4.61B	3.91B
Balance Sheet
Total Assets	21.35B	21.35B	18.74B	18.78B	17.20B	15.89B
Cash, Cash Equivalents and Short-Term Investments	6.39B	6.39B	5.85B	5.37B	3.66B	5.73B
Total Debt	4.48B	4.48B	4.98B	5.01B	5.01B	5.00B
Total Liabilities	11.48B	11.48B	10.21B	10.57B	10.92B	9.86B
Stockholders Equity	9.86B	9.86B	8.54B	8.21B	6.28B	6.03B
Cash Flow
Free Cash Flow	5.71B	5.41B	4.26B	4.68B	2.55B	3.24B
Operating Cash Flow	6.17B	6.17B	4.65B	5.18B	3.10B	3.59B
Investing Cash Flow	-708.09M	-708.09M	-370.61M	-534.56M	612.27M	73.27M
Financing Cash Flow	-4.94B	-4.94B	-4.00B	-2.83B	-4.58B	-4.17B

Lam Research Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 100.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 100.42 is below the 20-day moving average (MA) of 101.52, above the 50-day MA of 99.77, and above the 200-day MA of 82.96, indicating a bullish trend. The MACD of 0.48 indicates Positive momentum. The RSI at 55.69 is Neutral, neither overbought nor oversold. The STOCH value of 58.02 is Neutral, 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	$293.01B	28.21	56.14%	0.87%	27.09%	40.94%
LRCX	80 Outperform	$122.80B	23.36	58.24%	0.92%	23.68%	43.16%
KLAC	80 Outperform	$115.24B	27.79	100.78%	0.80%	24.04%	49.69%
AMD	77 Outperform	$262.56B	93.13	4.70%	―	27.17%	108.67%
AMAT	69 Neutral	$126.06B	18.63	35.64%	1.09%	6.70%	-5.95%
Sector *	61 Neutral	$35.51B	8.11	-11.05%	1.89%	8.55%	-8.72%
INTC	58 Neutral	$107.72B	―	-19.24%	0.52%	-3.72%	-2120.70%

Lam Research Corporate Events

Lam Research Amends Bylaws for Shareholder Meetings

On May 20, 2025, Lam Research Corporation’s Board of Directors amended the company’s bylaws to allow stockholders owning at least 20% of the company’s shares for over a year to call special meetings. This change aims to ensure stockholders receive timely and accurate information while preventing resource wastage from redundant meetings.