Lam Research Stock Surges on Strong Q2 Performance

Lam Research Corporation's Q2 earnings report highlights significant EPS growth and exceeded revenue expectations, prompting a 7.4% stock surge. The outlook remains bullish, with analysts projecting a 24.1% EPS growth for the fiscal year.

Date: 22-02-2025

AI Rating: 7

Detailed Analysis of Lam Research Corporation

Lam Research Corporation (LRCX) recently reported impressive Q2 earnings, showcasing an adjusted earnings per share (EPS) of $0.91, which surpassed analyst expectations. This positive performance correlates with a 7.4% increase in share price following the release. The company's revenue also exceeded consensus, reaching $4.4 billion.

Looking towards the future, LRCX is projecting Q3 revenue of approximately $4.7 billion, which again surpasses market expectations. Such predictions and the positive trajectory with the ongoing AI-driven demand in chipmaking equipment can increase investor confidence significantly.

The report also mentions that for the current fiscal year ending in June 2025, EPS is expected to grow by 24.1% year-over-year, reaching $3.71. The consistency in beating consensus estimates over the last four quarters adds further credibility to Lam's financial growth prospects.

Moreover, with a consensus rating of “Moderate Buy” based on 18 “Strong Buy” and 2 “Moderate Buy” ratings among 29 analysts, the sentiment around LRCX remains optimistic. The recent increase in analysts' ratings from three months ago indicates a growing confidence in the company’s market position.

Mizuho's analyst has even raised the price target for LRCX to $100, suggesting a solid upside potential as the current trading price is below the average price target of $91.27. The street-high price target of $110 suggests even more ambitious upside potential of 23.6%.

Stocks: LRCX