Key Stats for Lam Research Stock
- Price Change: -3.4%
- Current Price: $221
- Advanced Model Price Target: $280
The Street targets $221. The Model targets $280. Who is right? Run the numbers on TIKR →
What Happened?
Lam Research (LRCX) slid 3.4% on Friday, closing at $221 as the semiconductor equipment sector faced a wave of selling pressure.
The decline comes amid reports that chip equipment demand is cooling off, triggering concern that factories are delaying orders for new machines.
Investors interpreted this as a potential Red Flag for the broader sector, suggesting that the massive spending spree on AI-related infrastructure might be pausing for digestion.
While some chip stocks remained resilient, equipment makers like Lam Research and KLA-Tencor (KLAC) bore the brunt of the profit-taking.
See analysts’ growth forecasts and price targets for Lam Research stock (It’s free!) >>>
Is Lam Research Undervalued Today?
Despite the short-term pullback, management remains optimistic about the structural drivers discussed at the UBS Global Technology Conference.
CEO Tim Archer pushed back on the slowdown narrative, stating that they are “looking to be a strong second half of 2025” for the industry.
He highlighted a major strategic shift, noting that the company has “flipped the script on leadership in advanced packaging” due to its new etch tools.
Archer emphasized that these technology inflections allow Lam to “expand our SAM from the low 30s to the high 30s” by the end of the decade.
According to TIKR’s Advanced Valuation Model, this market share expansion implies attractive upside.
- Advanced Model Price Target: $280
- Current Price: $221
- Potential Upside: +27.1%
The model assumes Lam Research can maintain a 10.6% revenue CAGR through 2030 as it capitalizes on the complexity of AI chip manufacturing.
Conclusion: The cooling-off period may be temporary. With a valuation model pointing to $280 and leadership in advanced packaging, Lam Research stock looks like a strong candidate for a recovery.
How Much Upside Does Lam Research Stock Have From Here?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
