Reading the tape
NASDAQ: LRCX
Lam Research Corporation
Technology · Semiconductors
Market Cap
$370.23B
52w High
$300.00
52w Low
$79.49
P/E
55.15
Volume
8.26M
Outstanding Shares
1.25B
Price vs Fundamentals
Why The Stock Is Moving
Optimism is getting priced inHigh confidence
1Y Price: 259.94%Revenue (TTM): 26.53%FCF (TTM): 57.62%P/FCF: 100th pct
What changed
The stock rose 259.94% over the last year. Revenue grew 26.53% over the trailing twelve months. Operating margin moved from 30.85% to 34.26%. Free cash flow grew 57.62% over the trailing twelve months.
What the market seems to be pricing
The stock is trading toward the richer end of its historical P/FCF range (100th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.
What would invalidate this read
Operating margin is at 34.26% — continued expansion would be needed to justify the premium. Revenue growth of 26.53% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.
Company profile
Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits.
CEOTimothy Archer
SectorTechnology
IndustrySemiconductors
Employees18,600
IPO dateMay 4, 1984
Valuation
Forward P/E—
EV/EBITDA19.47
Enterprise value$123.55B
Stock splits
Oct 3, 2024↑ Forward
Every 1 shares became 10
Mar 17, 2000↑ Forward
Every 1 shares became 3
Sep 16, 1993↑ Forward
Every 2 shares became 3
Profitability & growth
Revenue growth23.76%
Gross margin49.98%▲2.93%vs FY2024
Operating margin34.26%▲11.89%vs FY2024
ROE54.33%▲21.21%vs FY2024
Analyst consensus
RatingBuy
Target price$291.17▼1.65%
38
Buy
11
Hold
1
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Jul 29, 2026
Q3 FY26 · EPS est $1.65 · Revenue est $6.62B
View
Dividends
$1.01/shareQuarterlyDividend Achiever · 11yrSafeLRCX pays a dividend with a 0.34% dividend yield, 11 consecutive years of growth, growing at 14.87% annually, covered 4.7× by free cash flow.
Dividend Yield
0.34%
Annual Div / Share
$1.01
5yr CAGR
+14.87%
Doubles every ~5.0yr
Payout Ratio
18.49%
Safe
Dividend Growth Rate
3yr CAGR
+14.8%
5yr CAGR
+14.87%
10yr CAGR
+23.74%
Dividend Safety
10/10Safe
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2025$1.01+13.5%
2024$0.89+15.2%
2023$0.77+15.7%
2022$0.67+15.1%
2021$0.58+14.9%
2020$0.51+11.0%
2019$0.46+3.4%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$3/yr
$0/mo
In 5 yrs
$6/yr+76%
$1/mo
In 10 yrs
$11/yr+211%
$1/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$3/yr $0/mo | $6/yr+76% $1/mo | $11/yr+211% $1/mo |
Long-range projections use a capped 12% annual growth assumption.
Yield-on-cost grows from 0.34% → 1.06% over 10yr
Analysis
Dividend Strengths
Dividend Achiever
LRCX has raised its dividend for 11 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.
Well-covered by free cash flow
The dividend is covered 4.7× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Strong dividend growth rate
The 5-year CAGR of 14.87% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
No strong risk signal stands out from the latest period pair.
Congressional Activity
Congress Trades in LRCX
STOCK Act disclosures from senators and representatives.
David Taylor
OHhouseRepublicanSale2026-04-27$1,001 - $15,000+11d to disclose
John Boozman
ARsenateRepublicanSale (Partial)Joint2026-01-08$1,001 - $15,000+37d to discloseJohn Boozman
ARsenateRepublicanSaleJoint2026-01-08$1,001 - $15,000+38d to disclose
Markwayne Mullin
OKsenateRepublicanPurchaseJoint2025-12-29$50,001 - $100,000+17d to disclose