LRCX stock jumps above analyst targets as softer rates and AI-driven capex boost semiconductor equipment demand.
Lam Research (NASDAQ:LRCX) surged 20.95% in a week to $366.81, trading at 47x forward earnings as markets price in a dovish Fed pivot and robust AI-related spending. The stock now sits above analyst consensus targets, raising valuation concerns amid insider selling and China exposure, which accounts for 34% of revenue.
The company reported Q3 FY26 revenue of $5.84 billion, up 23.76% year over year, with non-GAAP EPS of $1.47, beating the $1.3633 consensus. Guidance for the June quarter calls for $6.60 billion in revenue and $1.65 in EPS, signaling sequential acceleration. Management’s upgraded $140 billion global wafer-fab equipment outlook underscores strong demand for deposition and etch tools.
Bulls view LRCX as a leveraged play on AI-driven semiconductor capex, though valuation risks persist at current levels. A pullback to $330 would align the stock closer to a 40x forward multiple, restoring analyst consensus as support.