Record results and new guidance put Lam Research in focus

Lam Research (LRCX) is back in the spotlight after reporting record quarterly revenue and profitability, driven by stronger NAND related sales and customer support services, alongside fresh guidance for the September 2026 quarter.

Lam Research's share price has been volatile in recent weeks, with a 7 day share price return of 6.3% and a 30 day share price return that is down 11.1%. However, the year to date share price return of 68.2% and a very large 5 year total shareholder return indicate momentum that long term holders have already experienced.

If Lam Research's AI equipment exposure has caught your attention, you may also want to look at other opportunities in the broader build out of AI infrastructure through our screener of 56 AI infrastructure stocks

Lam Research now sits on record earnings, a sharp year to date run, and a recent pullback that shook out some optimism. Is the current price still offering meaningful upside, or has most of the move already played out?

Most Popular Narrative: 3.7% Undervalued

The most followed narrative values Lam Research at $323.38, which sits slightly above the last close of $311.35. That small gap anchors a view that the current price still trails the modelled fair value, with future growth expectations doing the heavy lifting.

Rapidly rising AI workloads and the associated need for higher storage, bandwidth, and processing power are accelerating the adoption of advanced chip architectures (such as gate-all-around, 3D NAND, and advanced packaging). This increases demand for Lam's etch and deposition tools, supporting sustained revenue growth and robust order visibility.

Want to see how Lam Research gets from today’s earnings to that higher fair value? The narrative leans on faster growth, wider margins, and a richer future earnings multiple. Curious which specific revenue and profit assumptions make that valuation stack up?

Result: Fair Value of $323.38 (UNDERVALUED)

However, Lam Research’s narrative could shift quickly if U.S. export rules further constrain China related revenue or if concentrated customer capex plans are cut back.

Another View: What Lam Research’s P/E Is Telling You

The narrative fair value for Lam Research suggests a small 3.7% upside, yet the P/E ratio paints a tougher picture. At 53.6x earnings, LRCX trades above the estimated fair ratio of 46.5x, and also above both peer and US Semiconductor industry averages near 51x. That richer multiple implies less room for disappointment if growth or margins soften. Which signal do you think deserves more weight right now?

For a closer look at how this earnings multiple stacks up in detail, including peers and the fair ratio the market could move toward, take a look at See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Mixed signals around Lam Research valuation can feel confusing, so move quickly from headline takeaways to your own judgement by weighing the 2 key rewards and 2 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.