TLDR
- LRCX rose ~1.42% to $310.10 on Friday, lifted by broad tech sector strength
- Q4 revenue hit $6.72 billion, beating estimates, with EPS of $1.82 vs. $1.68 expected
- Q1 2027 revenue guidance of $7.70B–$8.50B came in well above the $7.09B consensus
- Institutional ownership stands at 84.61%, with Eldred Rock Partners raising its stake by 6.4%
- Analysts hold a “Moderate Buy” consensus with an average price target of $358.47
Lam Research (LRCX) gained about 1.42% to $310.10 on Friday, as the broader tech sector pushed higher. The Nasdaq climbed 1.12% and the S&P 500 added 0.63%, with technology leading the way, up 1.20%.
Lam Research Corporation, LRCX
Friday’s move was largely driven by the overall market rather than any new company-specific news. Eight of the 11 S&P 500 sectors closed higher, with advancing stocks outpacing decliners roughly 2.7 to one.
The stock has also been riding momentum from its fiscal Q4 earnings report, released July 29. That report gave investors plenty to work with.
Lam posted Q4 revenue of $6.72 billion, ahead of analyst estimates of $6.67 billion. Adjusted EPS came in at $1.82, beating the $1.68 consensus. Revenue grew 30% year over year.
Gross margin was 51.7% and operating margin reached 37.4%. The company ended the quarter with $5.6 billion in cash, cash equivalents and restricted cash.
CEO Tim Archer said the company delivered “record revenue, operating margin and earnings per share” in the June quarter, pointing to AI-driven demand reshaping the chipmaking equipment space.
Q1 Guidance Blows Past Expectations
The guidance stole the show. Lam forecast Q1 2027 revenue of $7.70 billion to $8.50 billion, well above the $7.09 billion Wall Street had penciled in. EPS guidance of $2.00 to $2.30 also topped the $1.83 consensus.
Analysts expect the company to post full-year EPS of $9.24 for the current fiscal year.
Institutional Buying Remains Strong
Eldred Rock Partners raised its LRCX stake by 6.4% in Q2, picking up 4,289 additional units to bring its total to 71,251. That position is now worth roughly $30.9 million and makes up 6.6% of the firm’s portfolio.
Several other institutions added to their positions during recent quarters. Rokos Capital Management lifted its stake by 42% in Q1. Aware Super bought a new position worth around $60 million. Institutional investors and hedge funds now own 84.61% of the stock.
On the inside, two directors sold stock under pre-arranged Rule 10b5-1 plans. Director Eric Brandt sold 54,500 units at $350.80 in June, and Director Abhijit Talwalkar sold 18,282 units at $335.00 in July. Total insider sales over the past 90 days came to 80,441 units worth roughly $27.6 million.
LRCX has a 52-week range of $94.11 to $438.50. It currently trades about 26% above its 200-day moving average but remains roughly 8.5% below its 50-day moving average.
The RSI sits at 48, pointing to neutral momentum. Key support is near $298.50, close to the 100-day moving average.
Morgan Stanley maintained an Overweight rating but trimmed its target to $367. Wells Fargo and B. Riley both kept positive ratings with targets of $350. Mizuho rates the stock Outperform with a $400 target. The consensus average target sits at $358.47.
LRCX closed Friday at $310.10, up 1.42%.
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