Lam Research Corporation

Valuation Analysis

About the Company

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe. The company offers ALTUS systems to deposit conformal or selective films for tungsten or molybdenum metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SPEED gapfill high-density plasma chemical vapor deposition (CVD) products; Striker single-wafer atomic layer deposition products for dielectric film solutions; and VECTOR plasma-enhanced CVD products. It also provides Flex for dielectric etch applications; Vantex, a dielectric etch system that provides RF

Lam Research Corporation Stock at a Glance

Lam Research Corporation (LRCX) is currently trading at $366.81 with a market capitalization of $458.7B. The trailing P/E ratio stands at 69.47x, with a forward P/E of 46.04x. The 52-week range spans from $87.75 to $373.82; the current price is 1.9% below the yearly high. Year-over-year revenue growth stands at +23.8%. The net profit margin stands at 30.94%.

💰 Dividend

Lam Research Corporation pays an annual dividend of $1.04 per share, representing a yield of 0.28%. The payout ratio stands at 19.09%.

📊 Analyst Rating

32 analysts rate Lam Research Corporation (LRCX) on consensus: Buy. The average price target is $323.38, implying -11.84% from the current price. Analyst price targets range from $220.00 to $425.00.

Lam Research Corporation: The Investment Case in Detail

Lam Research Corporation (LRCX) operates in the Technology — specifically Semiconductor Equipment & Materials — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 23.8% pace year-over-year, suggesting the business model continues to find new customers and pricing power. Earnings growth of 40.8% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. The combination of a 49.98% gross margin and 35.04% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat.

The Bear Case

With a beta near 1.87, the share price moves sharply more than the broader market — drawdowns in market corrections can be unusually severe and require strong nerves. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

The EV/EBITDA multiple of 58.32x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

What to Watch Next

• The forward P/E of 46.04x is meaningfully below the trailing 69.47x — analysts expect earnings to step up; the next earnings release is the test.
• The share is trading at 97.5% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to above-average price swings.

Trading Data

💵 Dividend Info

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