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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.
