Lam Research Corporation (LRCX) Stock Analysis — Fair Value, Risk & Moat Rating

Lam Research Corporation (LRCX) stock price is $265.55 as of the latest market close, traded on the NASDAQ exchange.

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe. It offers ALTUS systems to deposit conformal or selective films for tungsten or molybdenum metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SPEED gapfill high-density plasma chemical vapor deposition (CVD) products; Striker single-wafer atomic layer deposition products for dielectric film solutions; and VECTOR plasma-enhanced CVD products. It also provides Flex for dielectric etch applications; Vantex, a dielectric etch system that provides RF technology and repeatable wafer-to-wafer performance enabled by Equipment Intelligence solutions; Kiyo for conductor etch applications; Syndion for through-silicon via etch applications; and Versys metal products for metal etch processes.

Lam Research Corporation has a market capitalization of $333.54B, classifying it as a mega-cap stock in the Technology sector.

Lam Research Corporation operates in the Technology sector, specifically within the Semiconductor Equipment & Materials industry. It trades on the NASDAQ under the ticker symbol LRCX.

Based on our valuation model, Lam Research Corporation trades 38.0% above our fair value estimate — potentially overvalued.

• FairValueLabs Fair Value: $192.40
• Current Price: $265.55
• Valuation Zone: Overvalued

Based on 31 Wall Street analysts, the consensus price target for Lam Research Corporation is $281.23, implying upside of 5.9% from the current price.

• Analyst High Target: $360.00
• Analyst Low Target: $200.00

Note: Analyst targets are shown for reference and are not used in our valuation model.

Here are the analyst consensus growth estimates for Lam Research Corporation:

• Revenue growth (current year est.): 21.9%
• EPS growth (current year est.): 29.0%
• Revenue growth (next year est.): 26.1%
• EPS growth (next year est.): 34.0%

The price-to-earnings ratio measures how much investors pay per dollar of earnings:

• Trailing P/E (last 12 months): 54.6x
• Forward P/E (next 12 months est.): 37.1x
• FairValueLabs Fair P/E: 40.0x

Lam Research Corporation has a beta of 1.79, meaning it is significantly more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.

Lam Research Corporation's balance sheet shows:

• Total Cash: $6.18B
• Total Debt: $4.48B
• Net Cash Position: $1.70B

A positive net cash position means the company holds more cash than debt, reducing financial risk.

Lam Research Corporation generated $4.82B in trailing twelve-month free cash flow (from $7.12B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.

Yes, Lam Research Corporation pays a regular dividend. Here are the key metrics:

• Dividend Yield: 0.4%
• Payout Ratio: 20.1%
• Consecutive Years Paid: 13
• 5-Year Dividend Growth: -14.2%
• FairValueLabs Safety Grade: A

Lam Research Corporation's Altman Z-Score is 21.59, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.

Lam Research Corporation scores 3.7/5 stars (Solid moat · eroding) in our moat analysis:

• ROIC Stability: 4/5
• Gross Margin Trend: 4/5
• Switching Costs: 3/5

A score above 3.5 suggests meaningful pricing power and a defensible market position.

Lam Research Corporation's return on equity is 65.6%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.

LRCX shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:

1. Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
2. Search for ticker symbol LRCX
3. Place a market or limit order for your desired number of shares

This is not investment advice. Always do your own research before buying any stock.

FairValueLabs classifies Lam Research Corporation as Value-Speculation. It has some value characteristics but carries elevated risk factors that make it speculative. Extra due diligence is recommended.

The current CEO of Lam Research Corporation is Mr. Timothy M. Archer.

Earnings per share measures the company's profit allocated to each outstanding share:

• Trailing EPS (last 12 months): $4.86
• Forward EPS (next 12 months est.): $7.15
• Analyst consensus EPS (this year): $5.34
• Analyst consensus EPS (next year): $7.15