Lam Research Stock Surged 220%, Here’s Why
Lam Research (LRCX)’s stock skyrocketed over 220%, fueled by a strong earnings beat and soaring demand in AI and semiconductors. With revenue and margins climbing sharply, plus a surge in market optimism for 2026, the rally reflects more than just numbers—it’s a story of strategic growth and sector momentum.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 1282025 | 1282026 | Change | |
|---|---|---|---|
| Stock Price ($) | 73.8 | 239.6 | 224.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 15,591.3 | 19,591.8 | 25.7% |
| Net Income Margin (%) | 26.0% | 29.7% | 14.0% |
| P/E Multiple | 23.6 | 52.1 | 120.5% |
| Shares Outstanding (Mil) | 1,299.2 | 1,264.4 | 2.8% |
| Cumulative Contribution | 224.5% |
So what is happening here? The stock surged 224%, driven by revenue up 26%, net margin rising 14%, and a P/E multiple jump of 120%. Let’s explore the key moves behind these impressive gains.
Here Is Why Lam Research Stock Moved
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- Q2 FY2026 Earnings Beat: Reported strong EPS ($1.27 vs est $1.17) & revenue ($5.34B vs est $5.23B). Gave strong Q3 2026 guidance.
- Consistent Beats 2025: Consistently beat EPS and revenue estimates across Q1, Q3, Q4 FY2025 and Q1 FY2026.
- AI & Semiconductor Demand: Strong demand in semiconductor markets, especially from AI transformation, drove growth.
- 2026 WFE Market Outlook: WFE market expected to grow from $110B in 2025 to $135B in 2026, despite constraints.
- Product & Capacity Growth: Launched new products and expanded manufacturing and R&D to meet strong customer demand.
Our Current Assesment Of LRCX Stock
Opinion: We currently find LRCX stock relatively expensive. 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.