Lam Research Slides on Top 500 Volume as Analysts Clash Over $107 Price Target

On August 21, 2025, Lam Research (NASDAQ:LRCX) closed at $97.91, a 0.75% decline, with a trading volume of $1.05 billion, down 25.46% from the previous day. Analysts have assigned a consensus price target of $107.09, reflecting a range of upgraded ratings and price objectives in recent reports. The company’s Q2 earnings report showed $1.33 EPS, exceeding estimates by $0.12, and revenue growth of 33.6% year-over-year to $5.17 billion. Institutional investors displayed mixed activity, with some firms increasing stakes while others reduced holdings, indicating divergent views on the stock’s near-term trajectory.

Recent analyst activity highlights a cautious optimism. Barclays set a $83 price target with an "equal weight" rating, while Argus and B. Riley raised their targets to $120 and $115, respectively, both maintaining "buy" ratings. Morgan Stanley adjusted its target to $94, and Stifel Nicolaus increased its objective to $110. Despite these upgrades, the stock’s 50-day moving average of $97.90 aligns closely with its current price, suggesting limited short-term momentum. Institutional ownership remains strong at 84.61%, though recent trades include both new entries and reduced positions from major funds.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns. The 1-day return was 1.98%, with a total return of 7.61% over 365 days. The strategy's Sharpe ratio was 0.94, indicating good risk-adjusted returns. However, the maximum drawdown of -29.16% shows the strategy's vulnerability during market downturns.