Lam Research (LRCX) Stock Is Up, What You Need To Know

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What Happened?

Shares of semiconductor equipment maker Lam Research (NASDAQ: LRCX) jumped 2.7% in the afternoon session after the broader semiconductor sector rallied as Dutch chipmaking equipment giant ASML Holding reported stronger-than-expected orders, boosting investor confidence. 

ASML, a key player in the industry, posted impressive third-quarter orders for its chip-making equipment, fueled by continued high demand for advanced semiconductors used in artificial intelligence. This positive news from a major peer lifted sentiment for other companies in the sector, including Lam Research, on expectations of similar industry-wide strength. Further adding to the positive mood, Rothschild & Co Redburn raised its price target on Lam Research's stock to $150 from $140, while maintaining a "Buy" rating. Broader market optimism also played a role, as hopes for a U.S. Federal Reserve rate-cut cycle helped lift chip stocks.

After the initial pop the shares cooled down to $143.09, up 3.5% from previous close.

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What Is The Market Telling Us

Lam Research’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 2 days ago when the stock gained 4.8% on the news that the company announced a breakthrough in advanced chip-making technology and received positive updates from analysts. The key development was a new etch technology, a vital step in making chips, designed for advanced packaging crucial for AI and 3D chip designs. This new method helps address issues with wafers warping during production. Following this news, Stifel raised its price target on the stock from $115.00 to $135.00, pointing to growth in memory markets. Similarly, Needham increased its price target from $115 to $150. The positive sentiment was part of a broader trend, as other chip companies like Taiwan Semiconductor Manufacturing also saw their shares rise.

Lam Research is up 97.5% since the beginning of the year, and at $143.09 per share, it is trading close to its 52-week high of $149.15 from October 2025. Investors who bought $1,000 worth of Lam Research’s shares 5 years ago would now be looking at an investment worth $3,811.

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