Morgan Stanley Downgrades Lam Research from Equal-Weight to Underweight with Lowered Price Target of $92.00

Morgan Stanley has downgraded Lam Research (LRCX) from "Equal-Weight" to "Underweight," lowering the price target from $94.00 to $92.00. This cautious outlook contrasts with positive sentiment from other firms. Analysts predict an average target price of $109.64, implying a 9.47% upside from the current price. The average brokerage recommendation is 2.0, indicating "Outperform" status.

Morgan Stanley has downgraded Lam Research (LRCX) from "Equal-Weight" to "Underweight," lowering its price target from $94.00 to $92.00 [1]. This move by the investment bank reflects concerns over a future slowdown in growth, particularly in Lam Research's key markets in China and the NAND memory sector. The firm expects system shipment growth to decelerate dramatically from an estimated 82% in 2025 to just 3% in 2026 [2].

The downgrade comes amid broader negativity across the semiconductor sector, which experienced a wider selloff. Lam Research's stock has been quite volatile, with 19 moves greater than 5% over the last year. Despite the recent drop, the stock has surged 32.7% since the beginning of the year, trading at $96.10 per share [1].

Other analysts, however, maintain a positive outlook. They predict an average target price of $109.64, implying a 9.47% upside from the current price. The average brokerage recommendation is 2.0, indicating an "Outperform" status [2]. This positive sentiment is reflected in recent quarterly results, which exceeded expectations and led several firms to raise their price targets for Lam Research [3].

Investors should consider the potential impact of the downgrade and the broader market sentiment. While the stock's volatility presents opportunities, the slowdown in growth drivers could weigh on performance in the coming year. It's essential to monitor the company's financial health and market conditions to make informed investment decisions.

References:
[1] https://finance.yahoo.com/news/why-lam-research-lrcx-stock-162620001.html
[2] https://www.investing.com/news/analyst-ratings/morgan-stanley-downgrades-lam-research-stock-on-slowing-growth-outlook-93CH-4217821
[3] https://www.cnbc.com/2025/09/02/morgan-stanley-downgrades-lam-research-sees-a-challenging-setup-in-2026.html