Lam Research (LRCX)
Lam Research builds the highly specialised machines that chipmakers use to carve microscopic circuits onto silicon wafers.
Is Lam Research a good stock for a UK beginner?
The honest version: Lam Research builds the highly specialised machines that chipmakers use to carve microscopic circuits onto silicon wafers.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
The company maintains its dominant position as chip complexity continues to explode.
A major shift in manufacturing methods that renders their current machines obsolete.
What does Lam Research do?
Think of Lam Research as the toolmaker for the digital age; without their complex equipment, the world's most advanced computer chips simply couldn't be manufactured. The bulk of the earnings comes from selling these precision machines to semiconductor factories, along with the ongoing maintenance and software to keep them running. Everything comes back to the global demand for new chip factories, driven by how much tech companies spend on expanding their production capacity.
On our factor screen it looks strongest on quality and growth, and weakest on value.
- ✓Pays a dividend - about 0.3% a year
- ✓Growing - revenue up about 30% over the year
- ✓Very profitable - turns about 31% of sales into profit
- !High P/E of 52 - big growth is already priced in
- ✓Low debt - a sturdier balance sheet
- ✓Strong return on shareholder money (ROE 65%)
- Quality screens high (79/100)
- Growth screens high (76/100)
- Essential role in the global technology supply chain
- High profit margins indicating strong pricing power
- Impressive efficiency in generating returns for shareholders
- Value screens low (18/100)
- Geopolitical tensions affecting international trade and supply chains
- Significant share price volatility compared to the broader market
- Heavy reliance on a small number of large chipmaking customers
What do Lam Research's numbers mean?
How much money does Lam Research make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does Lam Research pay a dividend?
Yes - Lam Research currently pays a dividend of about 0.3% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
When does Lam Research report earnings, and how did recent quarters go?
Lam Research is next scheduled to report on about 2026-10-21 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-07-29 | $1.68 | $1.82 | Beat +8% |
| 2026-04-22 | $1.36 | $1.47 | Beat +8% |
| 2026-01-28 | $1.17 | $1.27 | Beat +9% |
| 2025-10-22 | $1.22 | $1.26 | Beat +3% |
| 2025-07-30 | $1.21 | $1.33 | Beat +10% |
| 2025-04-23 | $1.00 | $1.04 | Beat +4% |
Across the last 6 quarters here, Lam Research came in ahead of what analysts expected 6 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
More in Technology
Micron Technology
Western Digital
NVIDIA
Gen Digital
Dell Technologies
Teradyne
Fidelity National Information Services
Hewlett Packard EnterpriseWhat are the scenarios for Lam Research?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Lam Research?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Essential role in the global technology supply chain
- High profit margins indicating strong pricing power
- Impressive efficiency in generating returns for shareholders
- High valuation relative to current earnings
- Business is highly sensitive to cyclical industry spending
- Very low dividend yield offers little income for investors
- Geopolitical tensions affecting international trade and supply chains
- Significant share price volatility compared to the broader market
- Heavy reliance on a small number of large chipmaking customers
The write-up's own warning lights — if these start happening, the case above changes.
- A sustained decline in global semiconductor manufacturing investment
- A breakthrough in chip design that requires entirely different manufacturing processes
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.