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With an impressive market cap of $144 billion, California-based Lam Research Corporation (LRCX) is a global leader in providing wafer fabrication equipment and services to the semiconductor industry. It has a strong global presence and expertise in areas such as nanoscale applications, chemistry, plasma and fluidics, and advanced systems engineering. LRCX is scheduled to release its fiscal 2024 Q4 earnings results before the market opens on Wednesday, July 24.
Ahead of the event, analysts expect Lam Research to report a profit of $7.52 per share, up 25.8% from $5.98 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in each of the last four quarters.
Its EPS of $7.79 for the last reported quarter beat the consensus estimate by 7.3% due to strong demand for semiconductors to meet the AI transformation's power and speed requirements.
Looking ahead, analysts expect Lam Research to report an EPS of $29.67 in fiscal 2024, down 13.2% from $34.17 in fiscal year 2023. However, its fiscal 2025 EPS is projected to rise 18.9% annually to $35.29.
Over the past 52 weeks, LRCX’s stock has soared a whopping 79.5%, outperforming the broader S&P 500 Index's ($SPX) 26.9% gains and the Technology Select Sector SPDR Fund’s (XLK) 37.6% returns during the same period.
Lam Research's solid market momentum is driven by its innovative wafer fabrication equipment and services, helping semiconductor customers meet the demand for smaller, better-performing devices. Its expertise in nanoscale applications, chemistry, and advanced systems engineering allows it to bridge the supply-demand gap in the chip sector and seize opportunities during the AI transformation.
Additionally, shares of Lam Research surged 5% in the subsequent trading sessions after the company released its better-than-expected Q3 earnings results on April 24. Its revenue of $3.8 billion exceeded estimates by 1.7%, and adjusted EPS sailed past expectations.
The current consensus opinion on Lam Research stock is “Moderate Buy” overall. Out of 27 analysts covering the stock, 16 suggest a “Strong Buy,” two recommend a “Moderate Buy,” and nine advise a “Hold.” Over the past three months, two new “Strong Buy” recommendations have been added.
Furthermore, the stock is currently trading above its average price target of $1,010.36. Its Street high target of $1,325 suggests a potential upside of 20.3% from the current price levels.
On the date of publication, Kritika Sarmah 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.
