Lam Research (LRCX) Plunges 3.15% on Institutional Sell-Off, Downgrade

On September 2, 2025, Lam Research's stock experienced a 3.15% drop in pre-market trading, reflecting investor sentiment and market dynamics.

Lam Research's recent stock decline can be attributed to several factors. Institutional investors, including OMERS and Synovus, have reduced their holdings in the company, which may signal broader market concerns. Additionally, Morgan Stanley downgraded Lam Research to underweight, citing a weak outlook for 2026 and a projected slowdown in growth drivers, particularly in China and the NAND memory markets.

Despite these challenges, Bernstein recently raised its price target for Lam Research from $95 to $105, maintaining an Outperform rating. This suggests that while short-term volatility may persist, there is still optimism about the company's long-term prospects.