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LRCX · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Lam Research Corporation (LRCX) stock moving?
LRCX closed at $222.39 on Nov 10, about 12.6% below its Oct 29 close of $254.39, after a sharp selloff. On Nov 5 the stock fell 16.4% to $185.20 on 31.5M shares, roughly 2.5 times its typical daily volume of about 11-12M; the news provided does not state a cause for that drop. The company then approved a $25B buyback (about 10% of its roughly $251B market cap) and a $0.33 quarterly dividend, and the stock rose 11% premarket on Nov 6, closing at $200.44. It has since recovered to $222.39 on falling volume (11.6M on Nov 10). Analyst sentiment is mixed: B. Riley trimmed its price target to $310 from $338 but kept Buy, and BofA removed Lam from its US 1 List while keeping a Buy rating, which signals lower conviction rather than a downgrade. Jim Cramer said he has cold feet. Supporting fundamentals include management's 2027 wafer fabrication equipment spending forecast topping $200B and KLA's Q1 beat with raised guidance on AI demand. Overall, the buyback and strong sector outlook are offset by analyst caution and a recent volatile selloff that has not fully reversed.
News behind the analysis
- BofA Global Research Removes Lam Research from US 1 ListBofA Global Research removed Lam Research from its 'US 1 List' of recommended stocks. The list removal is reported as a change in top-idea status rather than a rating change.
- The Conviction Gap: Bank of America Pulls 3 High-Fly AI Stocks Off Its Top ListBank of America removed Nvidia, Micron and Lam Research from its US 1 List but kept Buy ratings on all three. The move signals lower conviction rather than a downgrade.
- B. Riley Adjusts Price Target on Lam Research to $310B. Riley cut its Lam Research price target from $338 to $310 while keeping a Buy rating. The cut is a modest trim to the target, not a change in the rating.
- B. Riley Securities Maintains Buy on Lam Research, Lowers Price Target to $310B. Riley Securities kept its Buy rating on Lam Research and lowered its price target to $310. The move matches the earlier fiscal.ai report on the same change.
- Lam Research Unleashes $25 Billion Stock BuybackLam Research stock rose 11% premarket after the board approved a $25B share buyback and declared a $0.33 dividend. The buyback is about 10% of the company's roughly $251B market capitalization.
- Jim Cramer Picks DuPont Over Xylem, Has Cold Feet on Lam ResearchJim Cramer favored DuPont over Xylem and said he has cold feet on Lam Research. This is an opinion piece with no new company data.
- Lam Research Announces $25 Billion Share Repurchase Authorization and Quarterly DividendLam Research's board approved a new $25 billion share repurchase program and declared a quarterly dividend of $0.33 per share. This is the company's own announcement of the buyback and dividend.
- Lam Research Corporation Annual Shareholder Meeting Results and 2027 OutlookLam Research held its annual shareholder meeting, electing all director nominees, and management gave a 2027 wafer fabrication equipment (WFE) spending forecast. The headline outlook tops $200B for 2027.
- What Is Going On With KLA Stock on Tuesday?KLA gained 2% to $156 after beating Q1 earnings and boosting guidance on AI chip demand and an accelerating $1.1B advanced packaging business. KLA is a close semiconductor-equipment peer, so this is a read-across for Lam.
About Lam Research Corp
Lam Research, based in Fremont, California, makes and services the machines chipmakers use to build integrated circuits on silicon wafers. It is best known for etch and deposition tools, and it has an especially strong position in memory chips (NAND and DRAM) and in newer areas like advanced packaging for AI chips.
How it makes money
Most of its revenue comes from selling wafer fabrication equipment, mainly etch and deposition systems, to foundries, memory makers and logic chipmakers. A large second stream, its Customer Support Business Group, sells spare parts, upgrades, services and refurbished tools to its large base of installed machines. Revenue for fiscal 2026 (year ended June 2026) was about $23 billion, up roughly 26% from the year before. A large share of sales goes to customers in Asia, including China, Taiwan and South Korea.
What usually moves LRCX
- Chipmaker capital spending on fab equipment
- Memory (NAND/DRAM) investment cycles
- AI-driven demand for advanced chips and packaging
- US export controls on China
- Interest rates and overall semiconductor sentiment