Valued at a market cap of $131.2 billion, Lam Research Corporation (LRCX) designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The Fremont, California-based company serves major chipmakers worldwide, including Taiwan Semiconductor Manufacturing Company Limited (TSM), Samsung, Intel Corporation (INTC), Micron Technology, Inc. (MU), and SK Hynix. 

This semiconductor giant has surged past the broader market over the past 52 weeks. LRCX has rallied 26.4% over this time frame, while the broader S&P 500 Index ($SPX) has gained 15.2%. Moreover, on a YTD basis, the stock is up 43.5%, compared to SPX’s 10.2% return.

Zooming in further, LRCX’s outperformance is also apparent compared to the First Trust Nasdaq Semiconductor ETF’s (FTXL) 7.6% uptick over the past 52 weeks and 15.3% YTD rise. 

On Jul. 30, Lam Research delivered its Q4 results, with revenue of $5.2 billion and adjusted EPS of $1.33, both surpassing consensus estimates. Moreover, compared to the year-ago quarter, its top-line rose by a notable 33.6%, driven by increasing demand for deposition and etch technologies. It also recorded strong gross margins and record EPS. However, despite the solid results, its shares declined 4.3% in the following trading session, as investors likely remained cautious about the company’s significant reliance on revenue from China, which raises concerns about potential regulatory risks and market volatility. 

For fiscal 2026, ending in June 2026, analysts expect LRCX’s EPS to grow 6.8% year over year to $4.42. The company’s earnings surprise history is promising. It surpassed the consensus estimates in each of the last four quarters.

Among the 32 analysts covering the stock, the consensus rating is a "Moderate Buy” which is based on 20 “Strong Buy,” two "Moderate Buy,” and 10 “Hold” ratings. 

This configuration is slightly less bullish than a month ago, with three analysts suggesting a "Moderate Buy” rating. 

On Aug. 26, Stacy Rasgon from AllianceBernstein Holding L.P. (AB) maintained a "Buy" rating on LRCX with a price target of $105, implying a 1.3% potential upside from the current levels.

The mean price target of $112.50 represents an 8.5% premium from LRCX’s current price levels, while the Street-high price target of $135 suggests an upside potential of 30.2%.