Lam Research Stock Surged 110%, Here’s Why
Lam Research (LRCX)‘s stock skyrocketed over 100%, fueled by soaring revenue, expanding margins, and a soaring P/E as AI demand and tech innovation captivated investors. Couple that with upbeat earnings, raised forecasts, and analyst buzz—it’s clear why the market’s eyes are glued to Lam Research (LRCX) right now.
| 11062024 | 11062025 | Change | |
|---|---|---|---|
| Stock Price ($) | 76.0 | 162.2 | 113.5% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 15,591.3 | 19,591.8 | 25.7% |
| Net Income Margin (%) | 26.0% | 29.7% | 14.0% |
| P/E Multiple | 24.3 | 35.3 | 45.1% |
| Shares Outstanding (Mil) | 1,299.2 | 1,264.4 | 2.7% |
| Cumulative Contribution | 113.3% |
So what is happening here? The stock soared 113%, driven by a 26% revenue increase, a 14% boost in net margin, and a 45% jump in its P/E multiple. Let’s dive into the key moves behind these numbers.
Before we get into details of events that led to stock surge, here is what market wisdom says: A single stock can be risky, but there is a huge value to a broader, diversified approach we take with the Trefis High Quality Portfolio. We go beyond just equities. Is a portfolio of 10% commodities, 10% gold, and 2% crypto in addition to equities and bonds likely to return more during the next 1-3 years, and protect you better if markets crash 20%? We have crunched the numbers.
Here Is Why Lam Research Stock Moved
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- Strong Earnings: Lam Research consistently beat EPS and revenue estimates in Q3/Q4 2024 and Q2/Q1 2025/2026.
- AI Demand Surge: Accelerated demand for AI chips, HBM, and advanced logic fueled WFE growth.
- Raised WFE Outlook: The company raised its 2025 Wafer Fab Equipment spending forecast to $105 billion.
- Analyst Upgrades: Multiple analyst firms upgraded ratings and increased price targets, showing confidence.
- Tech Innovation: New etch and deposition technologies like Cryo 3.0 and Vantex drove market leadership.
Our Current Assesment Of LRCX Stock
Opinion: We currently find LRCX stock fairly priced. Why so? Have a look at the full story. Read Buy or Sell LRCX Stock to see what drives our current opinion.
Risk: To get a sense of risk with LRCX, just check how it behaved in past crashes. It plunged about 75% in both the Dot-Com Bubble and the Global Financial Crisis. The Inflation Shock pushed it down over 56%, while the 2018 Correction and Covid Pandemic dragged it nearly 45% each. Even with strong fundamentals, LRCX isn’t immune when markets sell off hard. These drops remind you that no stock is completely safe during widespread downturns.
LRCX stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.