Lam Research (LRCX) Plunges 3.13% on Institutional Sell-Off, Downgrade

Generated by AI AgentAinvest Pre-Market Radar
Tuesday, Sep 2, 2025 5:44 am ET1min read
Aime RobotAime Summary

- Lam Research's stock fell 3.13% pre-market due to institutional sell-offs and a Morgan Stanley downgrade to underweight.

- The downgrade cited weak 2026 outlook and slowing growth in China/NAND memory markets, with OMERS/Synovus reducing holdings.

- Bernstein raised its price target to $105 (maintaining Outperform), signaling long-term optimism despite short-term volatility.

- Market dynamics highlight diverging views between bearish near-term forecasts and bullish long-term expectations for the company.

On September 2, 2025, Lam Research's stock experienced a 3.13% 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,

downgraded 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.

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