LRCX Stock Analysis — Lam Research
Sector: Semiconductors
AI Verdict
You're paying up at 31.4x forward earnings, but the growth is real and the moat is credible if demand for advanced chip equipment holds.
Competitive Moat
Lam Research dominates the market for wafer fabrication equipment, especially etch and deposition tools critical to advanced chip manufacturing. Its defensibility comes from deep integration with leading foundries and proprietary process technology, making it a key enabler for next-gen AI and memory chips.
Summary
Lam's 76.1% expected EPS growth and forward P/E of 31.4x put it at the center of the semiconductor equipment boom.
Where It Stands
Shares are up 142.70% in the past year, with an RSI of 60.0 (neutral zone) and a forward P/E of 31.4x versus the sector median of 25x, reflecting high growth expectations.
Key Metrics
- RSI: 60 — Neutral
- Trailing P/E: 55.3x
- Earnings yield (trailing): 1.81% — What is earnings yield?
- Forward P/E: 31.4x
- PEG Ratio: 0.73
- Earnings Growth: +0.8%
- Revenue Growth: +0.3%
- Market Cap: $378.2B
- Dividend Yield: 0.01%
- 1-Year Return: 142.70%
- 52-Week High: $438.50
- 52-Week Low: $131.02
Learn About More Stock Metrics
- Beta: Learn more
- Return on Equity (ROE): Learn more
- EV/EBITDA: Learn more
Analyst Consensus
35 Buy · 6 Hold · 0 Sell (41 analysts)
Bull Case
The forward P/E of 31.4x is cheap for 76.1% forecasted EPS growth, especially with Lam's entrenched position in AI chip manufacturing equipment.
Bear Case
If the P/E multiple reverts to the sector median of 25x, the stock could see a 20%+ pullback even if earnings meet expectations.
Catalyst to Watch
Watch for major foundry capex announcements or AI chip demand updates—either could shift Lam's growth trajectory sharply.