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LRCX to Report Q1 Earnings: Should You Buy, Hold or Sell the Stock?
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Key Takeaways
Lam Research is set to report Q1 earnings on Oct. 21, with revenues expected to surge 52.4% year over year.
LRCX is poised to benefit from rising AI chip demand, increased HBM and DRAM spending, and advanced packaging.
LRCX's systems revenues are projected to jump 58.2% YoY, while Customer Support revenues may grow 40.6%.
Lam Research Corporation (LRCX - Free Report) is scheduled to release its first-quarter fiscal 2027 results after market close on Oct. 21. The company expects revenues of $8.1 billion (+/- $400 million) for the quarter. The Zacks Consensus Estimate is pegged at $8.12 billion, indicating 52.4% growth from the figure reported in the year-ago quarter.
Lam Research expects earnings of $2.15 (+/- 15 cents) per share for the first quarter. The consensus mark for first-quarter earnings has remained unchanged at $2.17 per share over the past 60 days, implying a 72.2% year-over-year increase.
Image Source: Zacks Investment Research
Lam Research has an impressive earnings surprise history. In the last reported quarter, it delivered an earnings surprise of 7.7%. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 7.1%.
Our proven model does not conclusively predict an earnings beat for Lam Research this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Earnings ESP: Lam Research has an earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Lam Research’s first-quarter performance is likely to have benefited from the surging demand for memory and advanced Artificial Intelligence (AI) applications. The rise in spending on AI and machine learning, particularly with the growing influence of Generative AI, is likely to have provided a significant boost to the company's performance in the fiscal first quarter. The increasing need for advanced AI-centric chips has become a key growth catalyst.
Heightened DRAM spending, especially in response to demand for high-bandwidth memory (HBM), is likely to have played in Lam Research's favor. The company's momentum in 3D DRAM and advanced packaging technologies is also expected to have added to its strong performance. At the same time, ongoing technological advancements are pushing NAND spending higher, which is likely to contribute to LRCX’s quarterly results.
Lam Research’s focus on expanding semiconductor fabrication capabilities, along with its heavy investment in research and development, positions it well in a competitive landscape. Its innovation through Semiverse solutions, particularly in high-aspect-ratio memory hole etch for NAND, is likely to have fueled this progress. LRCX’s strategic investments in cutting-edge technologies are anticipated to have bolstered its performance in the foundry and logic segment, while the increasing adoption of 3D architectures is expected to have supported growth in its etch and deposition services.
The company’s robust suite of tools, which enable foundry logic inflections, is likely to have secured strong customer traction. With the accelerating deployment of 5G and the Internet of Things (IoT), Lam Research’s semiconductor and memory solutions remain in high demand, reinforcing its market position in the fiscal first quarter.
All these factors are likely to have driven growth in system revenues. The Zacks Consensus Estimate for first-quarter systems revenues is pegged at $5.61 billion, implying year-over-year growth of 58.2%, underscoring Lam Research’s continued strength in the evolving tech landscape. The consensus mark for the Customer Support segment’s first-quarter revenues is pegged at $2.50 billion, indicating a year-over-year increase of 40.6%.
LRCX’s Stock Price Performance & Valuation
Lam Research shares have surged 54.2% year to date, outperforming the Zacks Electronics – Semiconductors industry, which has risen 12.6%. Compared with peers, the stock has outpaced ASML Holding (ASML - Free Report) and KLA Corporation (KLAC - Free Report) but underperformed Applied Materials (AMAT - Free Report) . Shares of ASML Holding, KLAC and Applied Materials have soared 53.4%, 36.4% and 59.2%, respectively.
Lam Research YTD Price Return Performance
Image Source: Zacks Investment Research
Let us look at the value Lam Research offers investors at current levels. Currently, LRCX is trading at a premium, with a forward 12-month P/E of 26.46X compared with the industry’s 11.36X.
Lam Research Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
Compared with semiconductor giants, the stock trades at a higher multiple than Applied Materials but at a lower multiple than KLA Corporation and ASML Holding. At present, Applied Materials, KLA Corp. and ASML Holding have forward 12-month P/E of 22.63X, 28.58X and 28.89X, respectively.
Investment Thesis on LRCX Stock
Lam Research is well-positioned to benefit from the rapid expansion of AI infrastructure. The company provides advanced etch and deposition equipment used by leading chipmakers, including Taiwan Semiconductor Manufacturing and Samsung.
As AI processors become more powerful, semiconductor manufacturers need more advanced processes, complex chip designs, advanced packaging and HBM. These trends increase the need for the type of equipment Lam Research provides.
The company's technology investments add to the growth opportunity. Its ALTUS ALD platform is aimed at improving manufacturing efficiency through molybdenum-based deposition, while the Aether platform supports the production of smaller and denser semiconductor structures.
Advanced packaging is another promising area. Lam Research expects revenues from this market to grow more than 70% in 2026 following strong growth in 2025. Emerging technologies such as backside power distribution and dry-resist processing could provide additional opportunities as semiconductor designs become increasingly complex.
Lam Research's consistent revenue growth is also encouraging. The company has generated more than $5 billion in quarterly revenues for five consecutive quarters, culminating in a record $6.72 billion in the last reported quarter. This consistency suggests the growth story is being supported by real semiconductor spending rather than just AI-related enthusiasm.
Final Verdict: Buy LRCX Stock for Now
Lam Research remains a high-quality AI infrastructure play with strong growth prospects. The AI infrastructure buildout remains in its early stages, advanced packaging demand continues to grow, and LRCX's leadership in etch and deposition gives it a competitive advantage that should be difficult to replicate.
Lam Research’s innovation and operational efficiency provide a solid foundation for future growth. Considering these factors, accumulating LRCX stock appears to be the most prudent strategy for investors.
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LRCX to Report Q1 Earnings: Should You Buy, Hold or Sell the Stock?
Key Takeaways
Lam Research Corporation (LRCX - Free Report) is scheduled to release its first-quarter fiscal 2027 results after market close on Oct. 21. The company expects revenues of $8.1 billion (+/- $400 million) for the quarter. The Zacks Consensus Estimate is pegged at $8.12 billion, indicating 52.4% growth from the figure reported in the year-ago quarter.
Lam Research expects earnings of $2.15 (+/- 15 cents) per share for the first quarter. The consensus mark for first-quarter earnings has remained unchanged at $2.17 per share over the past 60 days, implying a 72.2% year-over-year increase.
Image Source: Zacks Investment Research
Lam Research has an impressive earnings surprise history. In the last reported quarter, it delivered an earnings surprise of 7.7%. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 7.1%.
Lam Research Corporation Price and EPS Surprise
Lam Research Corporation price-eps-surprise | Lam Research Corporation Quote
What the Zacks Model Unveils for LRCX
Our proven model does not conclusively predict an earnings beat for Lam Research this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Earnings ESP: Lam Research has an earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: LRCX currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Influence LRCX’s Q1 Results
Lam Research’s first-quarter performance is likely to have benefited from the surging demand for memory and advanced Artificial Intelligence (AI) applications. The rise in spending on AI and machine learning, particularly with the growing influence of Generative AI, is likely to have provided a significant boost to the company's performance in the fiscal first quarter. The increasing need for advanced AI-centric chips has become a key growth catalyst.
Heightened DRAM spending, especially in response to demand for high-bandwidth memory (HBM), is likely to have played in Lam Research's favor. The company's momentum in 3D DRAM and advanced packaging technologies is also expected to have added to its strong performance. At the same time, ongoing technological advancements are pushing NAND spending higher, which is likely to contribute to LRCX’s quarterly results.
Lam Research’s focus on expanding semiconductor fabrication capabilities, along with its heavy investment in research and development, positions it well in a competitive landscape. Its innovation through Semiverse solutions, particularly in high-aspect-ratio memory hole etch for NAND, is likely to have fueled this progress. LRCX’s strategic investments in cutting-edge technologies are anticipated to have bolstered its performance in the foundry and logic segment, while the increasing adoption of 3D architectures is expected to have supported growth in its etch and deposition services.
The company’s robust suite of tools, which enable foundry logic inflections, is likely to have secured strong customer traction. With the accelerating deployment of 5G and the Internet of Things (IoT), Lam Research’s semiconductor and memory solutions remain in high demand, reinforcing its market position in the fiscal first quarter.
All these factors are likely to have driven growth in system revenues. The Zacks Consensus Estimate for first-quarter systems revenues is pegged at $5.61 billion, implying year-over-year growth of 58.2%, underscoring Lam Research’s continued strength in the evolving tech landscape. The consensus mark for the Customer Support segment’s first-quarter revenues is pegged at $2.50 billion, indicating a year-over-year increase of 40.6%.
LRCX’s Stock Price Performance & Valuation
Lam Research shares have surged 54.2% year to date, outperforming the Zacks Electronics – Semiconductors industry, which has risen 12.6%. Compared with peers, the stock has outpaced ASML Holding (ASML - Free Report) and KLA Corporation (KLAC - Free Report) but underperformed Applied Materials (AMAT - Free Report) . Shares of ASML Holding, KLAC and Applied Materials have soared 53.4%, 36.4% and 59.2%, respectively.
Lam Research YTD Price Return Performance
Image Source: Zacks Investment Research
Let us look at the value Lam Research offers investors at current levels. Currently, LRCX is trading at a premium, with a forward 12-month P/E of 26.46X compared with the industry’s 11.36X.
Lam Research Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
Compared with semiconductor giants, the stock trades at a higher multiple than Applied Materials but at a lower multiple than KLA Corporation and ASML Holding. At present, Applied Materials, KLA Corp. and ASML Holding have forward 12-month P/E of 22.63X, 28.58X and 28.89X, respectively.
Investment Thesis on LRCX Stock
Lam Research is well-positioned to benefit from the rapid expansion of AI infrastructure. The company provides advanced etch and deposition equipment used by leading chipmakers, including Taiwan Semiconductor Manufacturing and Samsung.
As AI processors become more powerful, semiconductor manufacturers need more advanced processes, complex chip designs, advanced packaging and HBM. These trends increase the need for the type of equipment Lam Research provides.
The company's technology investments add to the growth opportunity. Its ALTUS ALD platform is aimed at improving manufacturing efficiency through molybdenum-based deposition, while the Aether platform supports the production of smaller and denser semiconductor structures.
Advanced packaging is another promising area. Lam Research expects revenues from this market to grow more than 70% in 2026 following strong growth in 2025. Emerging technologies such as backside power distribution and dry-resist processing could provide additional opportunities as semiconductor designs become increasingly complex.
Lam Research's consistent revenue growth is also encouraging. The company has generated more than $5 billion in quarterly revenues for five consecutive quarters, culminating in a record $6.72 billion in the last reported quarter. This consistency suggests the growth story is being supported by real semiconductor spending rather than just AI-related enthusiasm.
Final Verdict: Buy LRCX Stock for Now
Lam Research remains a high-quality AI infrastructure play with strong growth prospects. The AI infrastructure buildout remains in its early stages, advanced packaging demand continues to grow, and LRCX's leadership in etch and deposition gives it a competitive advantage that should be difficult to replicate.
Lam Research’s innovation and operational efficiency provide a solid foundation for future growth. Considering these factors, accumulating LRCX stock appears to be the most prudent strategy for investors.