With a market cap of $93.2 billion, Lam Research Corporation (LRCX) is a global leader in providing innovative wafer fabrication equipment and services to the semiconductor industry. With expertise in areas like nanoscale applications, chemistry, plasma, and fluidics, the company supports the production of smaller, higher-performing electronic devices. The Fremont, California-based company is expected to announce its fiscal Q2 2025 earnings results on Wednesday, Jan. 22.
Ahead of this event, analysts project the semiconductor equipment supplier to report a profit of $0.87 per share, an increase of 16% from $0.75 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in the last four quarters. In Q1, the company topped the EPS consensus estimates by 7.5%.
For fiscal 2025, analysts expect LRCX to report an EPS of $3.50, up 17.1% from $2.99 in fiscal 2024. Moreover, EPS is expected to grow 12.6% year-over-year to $3.94 in fiscal 2026.
Shares of Lam Research have declined 3.3% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 23.7% rise and the Technology Select Sector SPDR Fund's (XLK) 23.8% return over the same period.
Shares of Lam Research jumped 5.1% following its Q1 2025 earnings release on Oct. 23. The company posted better-than-expected earnings of $0.86 per share and revenue of $4.2 billion, surpassing the consensus estimate, with a 7.6% sequential revenue increase fueled by gains in the Customer Support Business Group and System business. Lam's Q2 guidance projected $4.3 billion in revenue and adjusted EPS of $0.87, exceeding analyst expectations and signaling confidence in sustained demand for semiconductor manufacturing equipment. Additionally, improved gross margins and operating margins, coupled with growth prospects tied to AI and advanced semiconductors, further reinforced investor enthusiasm.
However, the stock dipped 5.3% on Dec. 19 due to a weak outlook from its key customer, Micron Technology (MU), which highlighted a slowdown in the consumer PC and smartphone segments and reduced capital expenditures for NAND manufacturing. As Lam dominates NAND equipment, the company's decline was exacerbated by Micron's warning about weaker demand in the NAND flash memory market.
Analysts' consensus view on Lam Research’s stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 29 analysts covering the stock, 16 recommend a "Strong Buy," two suggest "Moderate Buy," and 11 indicate a “Hold” rating. As of writing, LRCX is trading below its mean price target of $93.
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