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Valued at $264 billion by market cap, Lam Research Corporation (LRCX) is a leading global supplier of semiconductor manufacturing equipment, playing a critical behind-the-scenes role in the production of modern chips. Founded in 1980, the company plays a central role in enabling the production of increasingly complex and miniaturized chips used across data centers, mobile devices, automotive electronics, and AI-driven applications.
The semiconductor giant is expected to announce its fiscal third-quarter earnings soon. Ahead of the event, analysts expect LRCX to report a profit of $1.35 per share on a diluted basis, up 29.8% from $1.04 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports, which is impressive.
For the current year, analysts expect LRCX to report EPS of $5.24, up 26.6% from $4.14 in fiscal 2025.
LRCX shares have surged a whopping 182.6% over the past year, notably outperforming the S&P 500 Index’s ($SPX) 11.9% gains and the Technology Select Sector SPDR Fund’s (XLK) 22.9% gains over the same time frame.
Lam Research shares fell more than 8% on Mar. 26, as semiconductor stocks came under pressure following reports of a new AI memory-compression technique from Alphabet Inc. (GOOGL) researchers, which could potentially reduce memory demand for AI workloads, raising concerns about future semiconductor equipment spending.
Analysts’ consensus opinion on LRCX stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 32 analysts covering the stock, 23 advise a “Strong Buy” rating, three suggest a “Moderate Buy,” and six give a “Hold.” Its mean price target of $279.87 suggests an upside potential of 32.4% from the current market prices.
