Why Did Lam Research (LRCX) Plunge 3.14% Despite Strong Earnings?

On July 16, 2025, Lam Research's stock experienced a 3.14% drop in pre-market trading.

Lam Research, a leading provider of innovative wafer fabrication equipment and services for the semiconductor industry, recently reported its fiscal third-quarter earnings for the period ending March 30, 2025. The company's revenue for the quarter was $132.64 billion, representing a 20.21% year-over-year increase. Net income for the quarter was $36.38 billion, a 29.59% increase compared to the same period last year.

Analysts from Mizuho maintained their "outperform" rating on Lam Research, setting a target price of $115 per share. This rating reflects the company's strong financial performance and its position as a key player in the semiconductor industry.

Lam Research's core competencies lie in nanotechnology applications, chemical, plasma, and fluid systems, advanced system engineering, and a wide range of operational disciplines. The company's products and services are designed to help customers manufacture smaller, more powerful devices for a variety of electronic products, including mobile phones, personal computers, servers, wearable devices, automobiles, and data storage devices. The company's customer base includes leading semiconductor memory, foundry, and integrated device manufacturers, who produce products such as NVM, DRAM, and logic devices.