Lam Research (LRCX) Plunges 5.16% Amid Profit-Taking Concerns

On August 15, 2025, Lam Research's stock experienced a significant drop of 5.16% in pre-market trading, marking a notable shift in its recent performance.

Lam Research's stock has shown a strong upward trend in recent weeks, gaining 0.60% on the last trading day and rising for six consecutive days. This positive momentum has been supported by technical indicators, including buy signals from both short and long-term moving averages. The stock's price has risen in eight of the last ten days, indicating a robust bullish trend.

However, the recent pre-market drop suggests that investors may be taking profits or reacting to potential short-term risks. The stock's technical analysis indicates that it is in the upper part of a strong rising trend, which could present a selling opportunity for short-term traders. Additionally, the divergence between volume and price, with volume falling despite rising prices, may signal an early warning of possible changes in the stock's direction.

Despite the recent drop, Lam Research's stock remains within a strong rising trend and holds several positive signals. The company's earnings per share (EPS) surpassed analyst estimates by 3.8%, and its revenue was in line with expectations. These factors, combined with the stock's technical indicators, suggest that Lam Research may continue to see gains in the coming months.