Key Highlights
- Lam Research (LRCX) reached a record intraday peak of $300.06, marking approximately 250% growth over 12 months and 73% gains year-to-date.
- B. Riley Financial upgraded its price objective to $375 from $350, maintaining a Buy recommendation; shares jumped 2.1% following the announcement.
- Third-quarter fiscal results exceeded projections: earnings per share of $1.47 versus anticipated $1.36, while revenue reached $5.84 billion, representing 23.8% annual growth.
- Among 34 Wall Street analysts, 26 recommend buying the stock; firms such as TD Cowen, Stifel, and Citigroup recently increased their targets.
- Institutional ownership stands at 84.61% of LRCX shares; company insiders divested $27.9 million in stock during the latest quarter.
Shares of Lam Research (LRCX) breached the $300 threshold for the first time in history on May 14, reaching an intraday peak of $300.06. The semiconductor equipment manufacturer’s stock had settled at $289.24 the previous session before climbing 2.1% on May 13, bringing it within striking distance of the milestone. Over the trailing twelve months, the stock has surged approximately 250%, while posting 73% returns since the start of the year.
Lam Research Corporation, LRCX
The May 13 rally followed B. Riley Financial’s decision to elevate its price objective on LRCX to $375 from a previous $350, while reaffirming its Buy stance. During that trading session, shares peaked at $298.98 before settling at $295.44.
This momentum follows impressive quarterly performance. Lam Research delivered fiscal third-quarter earnings per share of $1.47, surpassing Wall Street’s consensus forecast of $1.36. The company generated $5.84 billion in revenue, representing a 23.8% increase compared to the year-ago period.
For the upcoming fiscal fourth quarter, leadership projected earnings per share between $1.50 and $1.80, exceeding analyst expectations. The company’s gross profit margins are nearing the 50% mark, with management indicating continued expansion ahead.
Wall Street Maintains Strong Conviction
Among the 34 analysts tracking the semiconductor equipment maker, 26 assign Buy ratings while eight recommend holding. The average price target sits at $291.75, although numerous firms have established targets significantly higher.
Following the Q3 report, Stifel elevated its target to $325 while maintaining its Buy rating. TD Cowen increased its objective to $340, highlighting the company’s expanding market share in foundry and DRAM segments, along with promising opportunities in NAND wafer fabrication equipment. Citigroup maintains a Buy recommendation with a $315 target. Cantor Fitzgerald affirmed its Overweight rating with a $320 price objective.
Sanford C. Bernstein raised its target to $325 with an Outperform designation. Seaport Research launched coverage with a Buy rating and $300 target. UBS reaffirmed its Buy stance, drawing parallels to the AI-driven expansion cycles experienced by Nvidia and Broadcom.
InvestingPro data reveals that 24 analysts have revised their earnings projections upward for the coming period. However, the platform’s analysis suggests LRCX may be trading above its Fair Value calculation.
Executive Transactions and Institutional Holdings
Company executives have engaged in significant selling activity recently. Chief Financial Officer Douglas Bettinger divested 50,057 shares in early March at an average of $224.03 per share, generating approximately $11.2 million. Ava Harter, another insider, sold 6,010 shares on April 27 at $258.66 each, totaling roughly $1.55 million.
During the most recent quarter, company insiders collectively sold 120,066 shares valued at $27.95 million. Insider ownership currently represents 0.31% of outstanding shares, while institutional investors and hedge funds control 84.61%.
Numerous hedge funds established new stakes during Q4 2024 and Q1 2025. The company’s current market capitalization has reached $372.7 billion.
A persistent challenge remains: U.S. semiconductor equipment manufacturers including LRCX encountered obstacles after the Department of Commerce implemented restrictions on tool shipments to China’s Hua Hong. Nevertheless, Cantor Fitzgerald’s projections anticipate wafer fabrication equipment spending will expand by at least 27% in 2026, potentially strengthening Lam Research’s future order pipeline.
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