Lam Research Corp. (NASDAQ:LRCX) stock rose about 1% on Friday as semiconductor equipment stocks advanced alongside a broader rally in technology shares. The technology sector gained 1.20%, while advancing stocks outpaced decliners by roughly 2.7-to-1. The Nasdaq climbed 1.12% and the S&P 500 added 0.63%.
The stock also continued to draw support from its fiscal fourth-quarter results, released on July 29, which topped Wall Street expectations and included stronger-than-expected first-quarter guidance driven by demand for artificial intelligence-related chipmaking equipment.
Friday’s gains appeared to reflect broad market strength rather than a company-specific development. Growth-oriented sectors led the market, with consumer discretionary and technology stocks outperforming. Eight of the 11 S&P 500 sectors traded higher, lifting semiconductor equipment makers along with the broader technology sector.
Strong Earnings And AI-Driven Outlook
Lam Research reported fiscal fourth-quarter revenue of $6.72 billion, exceeding analysts’ estimates of $6.67 billion, according to Benzinga Pro. Adjusted earnings came in at $1.82 per share, ahead of consensus estimates of $1.68 per share.
Gross margin was 51.7%, while operating margin reached 37.4%.
“Lam delivered record revenue, operating margin and earnings per share in the June quarter as AI-driven demand continues to reshape the semiconductor industry,” President and CEO Tim Archer said.
The company ended the quarter with $5.6 billion in cash, cash equivalents and restricted cash.
For the fiscal first quarter, Lam forecast revenue of $7.70 billion to $8.50 billion, well above analysts’ expectations of $7.09 billion. The company also projected adjusted earnings of $2.00 to $2.30 per share, compared with consensus estimates of $1.83 per share.
Lam Research Technical Picture
Lam Research remains in a long-term uptrend. The stock trades about 26% above its 200-day simple moving average and roughly 3% above its 100-day moving average.
The shorter-term trend is less constructive. Shares remain about 8.5% below the 50-day moving average, while the 20-day moving average remains below the 50-day average, indicating weaker near-term momentum.
The relative strength index stands at 48, suggesting neutral momentum rather than overbought or oversold conditions.
A key support level sits near $298.50, close to the 100-day moving average where buyers have previously emerged.
Technology Sector Continues To Lead
Lam Research slightly outperformed the broader technology sector on Friday, rising about 1.46% versus the Technology Select Sector SPDR Fund’s 1.20% gain.
Technology has remained one of the market’s strongest sectors, rising about 3.4% over the past 30 days and 5.5% over the past 90 days. Continued leadership in the sector could help Lam Research retest its 50-day moving average.
Lam Research Analyst Outlook
According to Benzinga’s analyst data, Lam Research carries a consensus Buy rating with an average price forecast of $384.84. Recent analyst actions include:
- Morgan Stanley maintained an Overweight rating and lowered its price forecast to $367 on July 30.
- B. Riley Securities maintained a Buy rating and reduced its price forecast to $350 on July 30.
- Wells Fargo maintained an Overweight rating and lowered its price forecast to $350 on July 30.
ETF Exposure
Lam Research is a significant holding in several exchange-traded funds, including the Global X S&P 500 Catholic Values ETF, the Corgi Lithography & Semiconductor Photonics ETF and the Baron Technology ETF.
Large inflows or outflows in those funds can create additional buying or selling pressure in the stock because of their portfolio weightings.
Lam Research Price Action
LRCX Stock Price Activity: Lam Research shares were up 1.42% at $310.10 at the time of publication on Friday, according to Benzinga Pro data.
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