Lam Research Rises 2.74% on 880M Volume Hits 101st in Market Activity as Analysts and Institutions Back Growth

Lam Research (LRCX) rose 2.74% on Sept. 4, with a trading volume of $880 million, ranking 101st in market activity. Analysts highlighted mixed but generally positive sentiment, with 20 “Buy” ratings and six “Hold” ratings, translating to an average price target of $107.22. Despite a downgraded “Underweight” call from Morgan Stanley, which cut its target price to $92 from $94, firms like Raymond James and Citigroup raised their estimates, with the latter setting a $113 target and a “Buy” rating. Barclays and Goldman Sachs also entered the fray, offering $83 and $115 targets, respectively.

The company’s Q2 earnings report fueled optimism, with EPS of $1.33 exceeding estimates by $0.12 and revenue jumping 33.6% year-over-year to $5.17 billion. Institutional investors increased stakes, including Vanguard Group, JPMorgan Chase, and State Street Corp, collectively boosting holdings by 1-14% in Q2. This aligns with Lam’s strong financials, including a 29.07% net margin and a debt-to-equity ratio of 0.38.

Backtesting results indicate a 16.1% potential upside from current levels based on mean analyst targets. However, the stock faces near-term volatility, with a 52-week high of $108.02 and a beta of 1.76 reflecting sensitivity to market swings. Analysts remain divided, balancing bullish revenue growth with caution over short-term risks.