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LRCX Stock Analysis: Hold (Score 56.3/100) | Blank Capital Research | Blank Capital Research
LRCX
LAM RESEARCH CORP
$264.20
+5.44 (+2.10%)
Score56.3
Data as of Apr 6, 2026
LRCX
LAM RESEARCH CORP
IndustrialsMachinery
$264.20
+5.44 (+2.10%)
Open $263.19High $268.23Low $259.33Prev $258.76Vol ---52W: $56.32 – $256.68
Hold
Composite score
01234567890123456789.0123456789
Global rank
#903
Percentile
Top 20%
Business quality
75th
percentile
Exceptional capital efficiency and structural profitability. This enterprise generates superior returns on invested capital compared to industry peers.
Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 75.2GRADE B+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
59.8%
Sector: 8.9%
Dividend Analysis audit
GROWTH
0.68%
Trailing Yield
$0.68
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
35%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, LAM RESEARCH CORP (LRCX) receives a "Hold" rating with a composite score of 56.3/100, ranked #903 out of 4446 stocks. Key factor scores: Quality 75/100, Value 40/100, Momentum 73/100. This is quantitative analysis only — not investment advice.
LAM RESEARCH CORP (LRCX) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does LAM RESEARCH CORP Do?
Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatments; and VECTOR plasma-enhanced CVD ALD products. It also provides SPEED gapfill high-density plasma chemical vapor deposition products; and Striker single-wafer atomic layer deposition products for dielectric film solutions. In addition, the company offers Flex for dielectric etch applications; Kiyo for conductor etch applications; Syndion for through-silicon via etch applications; and Versys metal products for metal etch processes. Further, it provides Coronus bevel clean products to enhance die yield; Da Vinci, DV-Prime, EOS, and SP series products to address various wafer cleaning applications; and Metryx mass metrology systems for high precision in-line mass measurement in semiconductor wafer manufacturing. The company sells its products and services to semiconductors industry in the United States, China, Europe, Japan, Korea, Southeast Asia, Taiwan, and internationally. Lam Research Corporation was incorporated in 1980 and is headquartered in Fremont, California. LAM RESEARCH CORP (LRCX) is classified as a mega-cap stock in the Industrials sector, specifically within the Machinery industry. The company is led by CEO Timothy M. Archer and employs approximately 17,700 people, headquartered in Fremont, California. With a market capitalization of $277.2B, LRCX is one of the largest companies in the Industrials sector.
LAM RESEARCH CORP (LRCX) Stock Rating — Hold (April 2026)
As of April 2026, LAM RESEARCH CORP receives a Hold rating with a composite score of 56.3/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.LRCX ranks #903 out of 4,446 stocks in our coverage universe. Within the Industrials sector, LAM RESEARCH CORP ranks #154 of 752 stocks, placing it in the top quartile of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
LRCX Stock Price and 52-Week Range
LAM RESEARCH CORP (LRCX) currently trades at $264.20. The stock gained $5.44 (2.1%) in the most recent trading session. The 52-week high for LRCX is $256.68, which means the stock is currently trading 2.9% from its annual peak. The 52-week low is $56.32, putting the stock 369.1% above its annual trough. Recent trading volume was 9.1M shares, reflecting moderate market activity.
Is LRCX Overvalued or Undervalued? — Valuation Analysis
LAM RESEARCH CORP (LRCX) carries a value factor score of 40/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 50.78x, compared to the Industrials sector average of 28.33x — a premium of 79%. The price-to-book ratio stands at 30.34x, versus the sector average of 2.23x. The price-to-sales ratio is 14.86x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, LRCX trades at 41.23x EV/EBITDA, versus 5.70x for the sector.
Overall, LRCX's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
LAM RESEARCH CORP Profitability — ROE, Margins, and Quality Score
LAM RESEARCH CORP (LRCX) earns a quality factor score of 75/100, reflecting elite profitability and capital efficiency that places it among the highest-quality businesses in the market. The return on equity (ROE) is 59.8%, compared to the Industrials sector average of 8.9%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 28.3% versus the sector average of 3.3%.
On a margin basis, LAM RESEARCH CORP reports gross margins of 49.9%, compared to 35.8% for the sector. The operating margin is 33.9% (sector: 6.2%). Net profit margin stands at 29.2%, versus 3.9% for the average Industrials stock. Revenue growth is running at 22.1% on a trailing basis, compared to 6.4% for the sector. These metrics collectively paint a picture of a highly profitable business with durable competitive advantages.
LRCX Debt, Balance Sheet, and Financial Health
LAM RESEARCH CORP has a debt-to-equity ratio of 111.0%, compared to the Industrials sector average of 70.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 2.26x, indicating strong short-term liquidity.
LRCX has a beta of 1.89, meaning it is more volatile than the broader market — a $10,000 investment in LRCX would be expected to move 88.8% more than the S&P 500 on any given day. The stability factor score for LAM RESEARCH CORP is 44/100, reflecting average volatility within the normal range for its sector.
LAM RESEARCH CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, LAM RESEARCH CORP reported revenue of $20.71B and earnings per share (EPS) of $1.27. Net income for the quarter was $6.06B. Gross margin was 49.9%. Operating income came in at $7.03B.
In Q2 2026, LAM RESEARCH CORP reported revenue of $5.34B and earnings per share (EPS) of $1.27. Net income for the quarter was $1.59B. Gross margin was 49.6%. Revenue grew 22.1% year-over-year compared to Q2 2025. Operating income came in at $1.81B.
In Q1 2025, LAM RESEARCH CORP reported revenue of $5.32B and earnings per share (EPS) of $1.24. Net income for the quarter was $1.57B. Gross margin was 50.4%. Operating income came in at $1.83B.
In Q1 2026, LAM RESEARCH CORP reported revenue of $5.32B and earnings per share (EPS) of $1.24. Net income for the quarter was $1.57B. Gross margin was 50.4%. Revenue grew 0.0% year-over-year compared to Q1 2025. Operating income came in at $1.83B.
Over the past 8 quarters, LAM RESEARCH CORP has demonstrated a growth trajectory, with revenue expanding from $14.91B to $20.71B. Investors analyzing LRCX stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
LRCX Dividend Yield and Income Analysis
LAM RESEARCH CORP (LRCX) currently pays a dividend yield of 0.7%. At this yield, a $10,000 investment in LRCX stock would generate approximately $$68.00 in annual dividend income. With a net margin of 29.2%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
LRCX Momentum and Technical Analysis Profile
LAM RESEARCH CORP (LRCX) has a momentum factor score of 73/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 25/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
LRCX vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing LRCX against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full LRCX vs S&P 500 (SPY) comparison to assess how LAM RESEARCH CORP stacks up against the broader market across all factor dimensions.
LRCX Next Earnings Date
No upcoming earnings date has been announced for LAM RESEARCH CORP (LRCX) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy LRCX? — Investment Thesis Summary
LAM RESEARCH CORP presents a balanced picture with arguments on both sides. The quality score of 75/100 indicates above-average profitability and business fundamentals. Price momentum is positive at 73/100, suggesting the trend favors buyers.
In summary, LAM RESEARCH CORP (LRCX) earns a Hold rating with a composite score of 56.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on LRCX stock.
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Institutional Research Dossier
LAM RESEARCH CORP (LRCX) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Lam Research (LRCX). While the company exhibits strong profitability and momentum, its valuation appears stretched relative to its sector, and its capital allocation strategy raises concerns. The semiconductor equipment industry is inherently cyclical, and LRCX's high beta suggests significant volatility, making a neutral stance prudent at this juncture.
LRCX's impressive ROE and margin profile are undeniable strengths, driven by its technological leadership in deposition and etch equipment. However, the company's elevated P/E and EV/EBITDA multiples, coupled with a relatively low Investment score in our quant model, suggest that much of the potential upside is already priced into the stock. Investors should await a more favorable entry point or evidence of sustained growth before considering a more bullish position.
Business Strategy & Overview
Lam Research operates within the semiconductor equipment industry, a critical enabler of the broader technology sector. The company's core business revolves around designing, manufacturing, and servicing equipment used in the fabrication of integrated circuits. Specifically, LRCX focuses on deposition, etch, and cleaning processes, which are essential steps in creating the complex multi-layered structures found in modern semiconductors. These processes are vital for creating the intricate circuits on silicon wafers.
LRCX's strategic positioning centers on technological leadership and close collaboration with its customers, which include major semiconductor manufacturers. The company invests heavily in research and development to stay ahead of the curve in process technology, enabling its customers to produce increasingly smaller and more powerful chips. This focus on innovation allows LRCX to command premium pricing and maintain strong market share in key equipment segments. The company's product portfolio is diverse, encompassing a range of systems tailored to specific process steps and materials.
The company's revenue model is based on equipment sales, as well as recurring revenue from services and spare parts. As semiconductor manufacturing processes become more complex, the demand for advanced equipment and specialized services is expected to grow. LRCX benefits from the increasing capital intensity of semiconductor manufacturing, as chipmakers invest heavily in new equipment to expand capacity and upgrade their technology.
The semiconductor equipment industry is characterized by intense competition and rapid technological change. LRCX competes with companies such as Applied Materials and ASML, each vying for market share and technological supremacy. The industry is also subject to cyclical fluctuations, driven by changes in demand for semiconductors and capital spending by chipmakers. LRCX's ability to navigate these cycles and maintain its technological edge will be crucial to its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
22.1%
Sector: 6.4%
+247% VS SCTR
Economic Moat Analysis
Lam Research possesses a narrow economic moat, primarily derived from intangible assets and switching costs. The company's intellectual property, including patents and proprietary know-how related to its deposition and etch technologies, creates a barrier to entry for competitors. Developing and replicating LRCX's advanced equipment requires significant investment and expertise, giving the company a competitive advantage.
Switching costs also contribute to LRCX's moat. Semiconductor manufacturers invest considerable time and resources in optimizing their processes around specific equipment platforms. Once a particular LRCX system is integrated into a production line, switching to a competitor's equipment can be disruptive and costly. This creates a degree of customer stickiness, as chipmakers are often reluctant to change equipment vendors unless there is a compelling reason to do so.
However, the moat is not wide due to the presence of strong competitors and the cyclical nature of the semiconductor industry. Applied Materials, in particular, is a formidable competitor with a broad product portfolio and a strong track record of innovation. The industry's cyclicality also limits the durability of LRCX's competitive advantage, as periods of weak demand can erode pricing power and market share.
Furthermore, the rapid pace of technological change in the semiconductor industry means that LRCX must continually invest in R&D to maintain its technological edge. Failure to do so could quickly erode its competitive position. While LRCX has a history of innovation, there is no guarantee that it will be able to maintain its technological leadership in the future. The company's moat is therefore considered narrow, providing some protection against competition but not insurmountable barriers to entry.
Financial Health & Profitability
Lam Research demonstrates strong financial health, characterized by robust profitability and revenue growth. The company's gross margin of 49.9% and operating margin of 33.9% significantly exceed the sector averages of 35.8% and 6.2%, respectively. This indicates LRCX's ability to command premium pricing and efficiently manage its operations. The net margin of 29.2% further underscores the company's profitability, dwarfing the sector average of 3.7%.
LRCX's revenue growth of 22.1% also surpasses the sector average of 6.6%, reflecting the company's strong market position and the increasing demand for its equipment. The company's ROE of 59.8% is exceptionally high, indicating efficient utilization of equity to generate profits. This is significantly higher than the sector average of 9.2%.
Analyzing the quarterly financial history reveals a consistent trend of strong revenue and net income. The company has maintained a gross margin above 47% and an operating margin above 27% in recent quarters. While there are slight fluctuations in these metrics, the overall trend is positive. The current ratio of 2.26 suggests a healthy liquidity position, indicating the company's ability to meet its short-term obligations.
However, the company's debt-to-equity ratio of 111.00 is higher than the sector average of 70.00, suggesting a relatively high level of leverage. While the company's strong profitability mitigates some of the risks associated with this leverage, it is a factor that investors should monitor. The absence of free cash flow data makes it difficult to assess the company's cash flow generation capabilities fully. Further investigation into the company's cash flow statement is warranted to gain a more complete understanding of its financial health.
Valuation Assessment
Lam Research's valuation presents a mixed picture. While the company's strong growth and profitability justify a premium valuation, the current multiples appear stretched relative to the sector. The company's P/E ratio of 179.8x is significantly higher than the sector average of 27.7x, suggesting that the stock is trading at a substantial premium to its earnings. Similarly, the EV/EBITDA multiple of 37.3x is much higher than the sector average of 5.7x, indicating that the company is expensive relative to its enterprise value and operating cash flow.
Given the company's historical growth rate and profitability, a premium valuation is warranted. However, the current multiples appear to be pricing in very high expectations for future growth. The semiconductor equipment industry is inherently cyclical, and periods of strong growth are often followed by periods of slower growth or even decline. Therefore, it is unlikely that LRCX will be able to sustain its current growth rate indefinitely.
The absence of free cash flow data makes it difficult to assess the company's valuation using a discounted cash flow (DCF) analysis. However, based on the available data, it appears that the stock is fully valued, if not overvalued. Investors should be cautious about paying such a high premium for the stock, especially given the cyclical nature of the industry and the potential for future growth to slow.
A more reasonable valuation might be achieved if the company can continue to innovate and maintain its market share. However, the risk of competition and technological disruption should not be underestimated. Investors should carefully consider the risks and potential rewards before investing in LRCX at its current valuation.
Risk & Uncertainty
Lam Research faces several specific risks that could impact its future performance. The most significant risk is the cyclical nature of the semiconductor industry. Demand for semiconductor equipment is highly correlated with demand for semiconductors, which in turn is driven by broader economic conditions and technological trends. A downturn in the semiconductor industry could lead to a sharp decline in LRCX's revenue and profitability.
Another key risk is competition. The semiconductor equipment industry is highly competitive, with several large players vying for market share. Applied Materials is a particularly formidable competitor, with a broad product portfolio and a strong track record of innovation. LRCX must continually invest in R&D to maintain its technological edge and compete effectively.
Geopolitical risks also pose a threat to LRCX's business. The company sells its products and services to customers around the world, including China, which is a major market for semiconductors. Trade tensions between the United States and China could disrupt LRCX's supply chain and reduce demand for its products in China.
Customer concentration is another risk factor. A significant portion of LRCX's revenue is derived from a small number of large customers. The loss of one or more of these customers could have a material adverse effect on the company's financial performance. Finally, the company's relatively high level of debt could increase its vulnerability to economic downturns and rising interest rates.
Bulls Say / Bears Say
The Bull Case
BULL VIEWLam Research's technological leadership in deposition and etch equipment will drive continued market share gains and revenue growth as semiconductor manufacturing becomes increasingly complex.
BULL VIEWThe company's strong profitability and high ROE demonstrate its ability to generate superior returns for shareholders, justifying a premium valuation.
BULL VIEWIncreased government spending and subsidies for domestic semiconductor manufacturing will create a favorable environment for Lam Research, boosting demand for its equipment.
The Bear Case
BEAR VIEWLam Research's high valuation multiples reflect unsustainable growth expectations, and the stock is vulnerable to a significant correction when the semiconductor cycle inevitably turns downward.
BEAR VIEWThe company's reliance on a few large customers and its exposure to geopolitical risks, particularly in China, create significant downside potential.
BEAR VIEWIncreased competition from Applied Materials and other equipment manufacturers could erode Lam Research's market share and pricing power, leading to lower profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score LRCX and 4,400+ other equities.
LAM RESEARCH CORP exhibits a 1209% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
28.3%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
49.9%
Sector: 35.8%
Operating Margin
Core business profitability
33.9%
Sector: 6.2%
Net Margin
Bottom-line profitability
29.2%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $68 annually in dividends at the current trailing rate.
