Lam Research (LRCX) Plunges 5.2% as Investors Take Profits

On August 15, 2025, Lam Research's stock experienced a 5.2% drop in pre-market trading, marking a significant shift after a period of sustained gains.

Lam Research's stock has been on a strong upward trajectory, gaining 0.600% on the last trading day and rising for six consecutive days. This positive momentum was supported by technical indicators, including a breakout above a resistance level and a general buy signal from moving averages. The stock's price has risen in eight of the last ten days, indicating a robust short-term trend.

However, the recent drop in pre-market trading suggests that investors may be taking profits or reacting to potential short-term risks. The stock's volume fell on the last trading day, which could be an early warning sign of a possible reversal. Despite this, the stock remains in a strong rising trend, and analysts expect it to continue rising over the next three months.

Lam Research's earnings report for the full year 2025 showed that the company's earnings per share (EPS) surpassed analyst estimates by 3.8%, although revenue was in line with expectations. This positive earnings surprise could have contributed to the stock's recent gains, but the pre-market drop indicates that investors may be reassessing their positions.