With a market cap of $105.9 billion, Lam Research Corporation (LRCX) is a leading global supplier of advanced wafer fabrication equipment and services for the semiconductor industry. With core strengths in nanoscale applications, plasma, fluidics, and advanced systems engineering, Lam supports top semiconductor manufacturers with deposition, etch, and cleaning solutions.

Shares of the Fremont, California-based company have underperformed the broader market over the past 52 weeks. LRCX stock has decreased 14.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 9.8%. However, shares of Lam Research are up 14.6% on a YTD basis, outpacing SPX's marginal decline.

In addition, the semiconductor equipment maker has lagged behind the Technology Select Sector SPDR Fund's (XLK) 6.8% return over the past 52 weeks. 

Shares of Lam Research climbed 6.3% following its Q3 2025 earnings release on Apr. 23. The company reported revenue of $4.7 billion and an adjusted EPS of $1.04, surpassing the expectations. Robust demand for advanced AI chips drove increased orders from major customers like TSMC, contributing to strong shipments in Taiwan and maintaining solid demand in China, which accounted for 24% and 31% of revenue, respectively. Additionally, Lam’s Q4 revenue outlook of $5 billion (±$300 million) and long-term projection of $25 billion  - $28 billion by 2028, fueled investor confidence.

For the current fiscal year, ending in June 2025, analysts expect LRCX's EPS to grow 33.4% year-over-year to $3.99. The company's earnings surprise history is promising. It beat the consensus estimates in the last four quarters.

Among the 30 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 20 “Strong Buy” ratings, two “Moderate Buys,” and eight “Holds.”

This configuration is slightly more bullish than three months ago, with 19 “Strong Buy” ratings on the stock.

On May 19, Berenberg raised its price target on Lam Research to $105 and maintained a “Buy" rating. The firm sees limited impact from U.S. tariffs and expects wafer fab equipment spending to rise 3% in 2025 and 4% in 2026.

As of writing, LRCX is trading below the mean price target of $90.52. The Street-high price target of $125 implies a potential upside of nearly 51% from the current price levels.