LRCX · NASDAQ · STOCK
Lam Research (LRCX) Stock Analysis
$318.81
52W $134.04 – $438.50
64/100
$398.73B
55.1
1.85
⚠
Buy rating, but near-term risk/reward is unfavorable
The long-term recommendation is based on the composite investment score. The near-term risk/reward is based on nearby support and resistance levels. These can differ when a strong company trades close to resistance with support further below.
Is LRCX Bullish or Bearish?
Bullish.
Innellis AI committee rates Lam Research (LRCX) Buy with a composite score of 64/100
, based on 6 analysts with 50% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +11.46 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -8.54 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Growth Analyst sees a compelling case — revenue growing 26.0% yoy -- genuine top-line momentum. Portfolio Manager remains cautious — sector concentration is already high (hhi 2796.97). This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- ROE of 67.0% shows genuine earnings power backing the valuation — Value
- Revenue growing 26.0% YoY -- genuine top-line momentum — Growth
- EPS growing 38.6% YoY — Growth
- 5 consecutive earnings beats -- consistent execution — Growth
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- Price structure making higher highs and higher lows — Technical
Bear Case
- P/E of 55.2 is expensive by classic value standards — Value
- Price-to-book of 41.2x prices in significant intangible value — Value
- Bollinger bandwidth of 32.3% signals elevated volatility — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 10, 2026
Overall Committee Score
64/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 13%
of 287 Technology peers
Value Analyst
neutral
49
/ 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 67.0% shows genuine earnings power backing the valuation
− P/E of 55.2 is expensive by classic value standards
Growth Analyst
bullish
84
/ 100 · High confidence
Strong, accelerating growth with consistent execution
+ Revenue growing 26.0% YoY -- genuine top-line momentum
Technical Analyst
bullish
69
/ 100 · High confidence
Price action is constructive -- trend and momentum agree
+ Price structure making higher highs and higher lows
Risk Analyst
neutral
58
/ 100 · Moderate confidence
Moderate risk -- no single red flag, but nothing that clearly de-risks the position either
+ Low leverage (debt-to-equity 0.30) -- balance sheet can absorb a shock
− Bollinger bandwidth of 32.3% signals elevated volatility
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
neutral
58
/ 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 63.5 to 63.5.
- New bearish signals: 2 appeared.
- Bearish pressure eased: 2 signal(s) disappeared.
Analyst-level changes:
- Risk Analyst: +1 bearish signal(s).
- Value Analyst: +1 bearish signal(s).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
45.7
Neutral
MACD Histogram
0.972
Bullish Momentum
Trend Direction
Uptrend
Weekly: Uptrend
Market Structure
Mixed
Support
$250.65
Resistance
$345.24
Bollinger %B
0.58
Inside Bands
Price vs Moving Averages
EMA 9
$325.78
Below
EMA 21
$318.57
Above
EMA 50
$314.30
Above
EMA 200
$275.17
Above
Fundamental Analysis
Valuation
26
Growth
86
Profitability
94
Financial Health
100
Cash Flow
70
Valuation
P/E Ratio
55.1×
P/B Ratio
32.09×
PEG Ratio
1.43
Dividend Yield
0.35%
52W High
$438.50
52W Low
$134.04
Quality & Growth
ROE
5825.9%
ROA
3087.8%
Gross Margin
5046.9%
Operating Margin
3529.4%
Revenue Growth YoY
—
Debt / Equity
0.33
AI Fundamental Assessment
P/E ratio of 55.1 (rich relative to a 15-40x range); Price-to-book of 32.1x; PEG ratio of 1.4 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 58.3%; Return on assets of 30.9%; Net margin of 31.3%; Gross margin of 50.5%; Current ratio of 2.63 (healthy short-term liquidity); Debt-to-equity of 0.33; Free cash flow per share is positive (3.90); Most recent quarter beat estimates by 6.0%; 5 consecutive earnings beats; EPS growth accelerating (+15.0% -> +24.7% QoQ); Average YoY EPS growth of 36.8%; Analyst estimates rising over recent quarters
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