With a market cap of $98.1 billion, Fremont, California-based Lam Research Corporation (LRCX) is a leading global supplier of semiconductor wafer fabrication equipment and services, specializing in nanoscale applications, plasma, fluidics, and advanced systems engineering. Its innovative products help customers manufacture high-performance semiconductor devices used in electronics such as smartphones, computers, and automotive systems.

Companies valued at $10 billion or more are generally described as “large-cap” stocks, and Lam Research fits right into that category. The company provides a wide range of solutions, including deposition, etch, and wafer cleaning systems, serving major semiconductor manufacturers worldwide.

Despite falling 32.4% from its 52-week high of $113 reached in July 2024, shares of the semiconductor equipment maker have dipped 2.3% over the past three months, a milder drop compared to the broader S&P 500 Index’s ($SPX) 5.1% decline over the same time frame. 

In the longer term, LRCX stock is up 5.8% on a YTD basis, outperforming SPX’s 1.8% dip. However, shares of Lam Research have decreased 21.8% over the past 52 weeks, lagging behind SPX’s 12.6% return over the same time frame.

Despite recent fluctuations, LRCX has been trading below its 50-day moving average since mid-July last year. Also, the stock has remained below its 200-day moving average since August last year.

Lam Research stock jumped 7.4% following its Q2 2025 earnings release on Jan. 29. The company reported Q2 revenue of $4.4 billion and an adjusted EPS of $7.52, surpassing analysts' estimates. Additionally, Lam forecasted Q3 revenue of $4.7 billion (±$300 million), significantly above Wall Street’s estimate, driven by AI-related demand for advanced chip-making equipment. Investor confidence was further boosted by management’s expectation that growth from non-Chinese customers would outpace any sales decline in China during 2025.

Also, Lam Research has outpaced its rival Applied Materials, Inc. (AMAT), which has seen a 6% YTD drop and a 27% decline over the past 52 weeks. 

Despite LRCX’s outperformance relative to SPX on a YTD basis, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 29 analysts covering the stock, and as of writing, LRCX is trading below the mean price target of $96.35.