With a market cap of around $378 billion, Lam Research Corporation (LRCX) designs, manufactures, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits across the United States, Asia, and Europe. It offers a wide range of deposition, etch, cleaning, and wafer-processing systems, along with customer support services, spares, and upgrades for the semiconductor manufacturing industry.
Shares of the Fremont, California-based company have outperformed the broader market over the past 52 weeks. LRCX stock has jumped 274% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 28.3%. Moreover, shares of the company are up 80.4% on a YTD basis, compared to SPX's 9.5% rise.
In addition, shares of the semiconductor equipment maker have outpaced the State Street Technology Select Sector SPDR ETF's (XLK) 58.2% return over the past 52 weeks.
Lam Research reported Q3 2026 adjusted EPS of $1.47 and revenue of $5.84 billion on Apr. 22, beating analyst estimates. The strong performance was driven by 24% year-over-year revenue growth, including a 23% increase in systems revenue to $3.73 billion and a 25% rise in customer support and related revenue to $2.11 billion, while adjusted gross margin improved to 49.9% from 49% a year earlier.
The company also issued stronger-than-expected Q4 guidance, forecasting adjusted EPS of $1.50 - $1.80 and revenue of $6.2 billion - $7 billion, driven by strong AI-related semiconductor demand. However, the stock fell 2.6% the next day.
For the fiscal year ending in June 2026, analysts expect LRCX's adjusted EPS to grow nearly 37% year-over-year to $5.67. The company's earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 33 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 22 “Strong Buy” ratings, four “Moderate Buys,” and seven “Holds.”
On May 12, B. Riley raised its price target on Lam Research to $385 and maintained a “Buy” rating.
The mean price target of $313.87 represents a 2.2% premium to LRCX’s current price levels. The Street-high price target of $385 suggests a 25.3% potential upside.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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