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Lam Research Corporation (LRCX), with a market cap of $99.9 billion, is a leading supplier of semiconductor fabrication equipment and services. Based in Fremont, California, the company focuses on innovative solutions for wafer processing across various industries.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Lam Research fits this criterion perfectly. Lam Research is distinguished by its cutting-edge technologies in plasma etching, thin film deposition, and wafer cleaning, essential for producing high-performance semiconductor devices.
However, the chip-making tools supplier has declined 33.1% from its 52-week high of $1,130, reached on Jul. 11. Over the last three months, Lam Research's shares dipped 22.2%, which is more pronounced than The Technology Select Sector SPDR Fund's (XLK) loss of 3% during the same period.
In the longer term, LRCX has dropped 3.5% on a YTD basis, trailing behind XLK’s 8.8% gains. Moreover, shares of Lam Research have gained 7.9% over the past 52 weeks, compared to XLK’s 18.4% gains over the same time frame.
LRCX stock has been trading below both its 50-day and 200-day moving averages since July, indicating a bearish price trend.
Lam Research has underperformed due to a sluggish memory market recovery and reduced revenue from memory sales, along with lower shipments to China and a broader semiconductor industry downturn. Moreover, despite beating Q4 earnings results and Q1 revenue forecast estimates on Jul. 31, LRCX saw its shares dip 9.9% the following day due to analysts' concerns over a delayed NAND spending recovery, which was pushed from late 2024 to early 2025. Additionally, geopolitical risks affecting Chinese sales and reduced-price targets from analysts further contributed to the stock's decline.
Also, LRCX has lagged behind its rival Applied Materials, Inc. (AMAT), which saw a 17.3% increase over the past 52 weeks and a rise of 11.2% on a YTD basis.
Despite the stock’s underperformance relative to the broader sector, analysts are moderately bullish about its prospects. LRCX has a consensus rating of “Moderate Buy” from the 27 analysts covering the stock, and the mean price target of $1,051.44 is a premium of 39.1% to current levels.
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.
