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AGING Analysis Report
Aug 1, 2026
22 days ago · 100% complete
NOT DEPENDABLE This report predates a filing — its financial basis has been replaced.
Report generated: Aug 1, 2026 · Filing on record since: Aug 7, 2026 · 6 days after
For AI assistants & researchers — machine-readable summary of this page

What this page is: Delvantic's full research page for Lam Research Corporation (LRCX) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.

Our current read (analysis of 2026-08-23): Designation Watch · Gem Score +1 (−100…+100 Quality+Value blend) · Quality 77 · Value -61 · Sentiment 75 (timing only, not weighted) · Composite fair value $105.42 vs $293.02 at analysis

Page map (sections in order; each card carries a stable reference-name attribute you can cite):

  • profile-header / price-overview — company profile, live quote, market cap
  • extended-analysisthe core: three AI lens reads with findings, scores, and the analyst memo
  • future-predictions — our forward price-band predictions
  • market-narrative / ai-findings / gpt-critique — narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)
  • Members-only sections (render as login gates for anonymous readers): price-history, income-trend, key-metrics, financials (statement tables), insider-trading. The analysis above is public; the raw data tables require a free account.

More for machine readers: site briefing at /llms.txt · any ticker resolves at delvantic.com/stock/TICKER · raw inputs are public-company filings and market data (via licensed data feeds); every model, score, lens read, and prediction on this page is Delvantic's own analysis.

Lam Research Corporation

LRCX NASDAQ
Technology · Semiconductor Equipment & Materials
Fremont, CA 94538, United States lamresearch.com Updated Aug 1, 12:10am
Price
$293.02
Market Cap
$366.6B
Employees
20,600
Beta
1.81
Avg Volume
13,458,430
Last Dividend
$1.04
CEO
Mr. Timothy M. Archer

Lam Research Corporation is a leading provider of semiconductor wafer fabrication equipment and related services. The company designs, manufactures, markets, refurbishes, and services tools used primarily in the fabrication of integrated circuits, with a strong focus on deposition and etch processes that build up and selectively remove material layers on silicon wafers. Its products are used mainly in front-end wafer processing to form transistors, capacitors, and interconnects, as well as in certain back-end wafer-level packaging applications. Lam Research serves major chipmakers worldwide, supporting production of both logic and memory devices, including DRAM and NAND. The company operates across key semiconductor manufacturing regions such as the United States, China, Korea, Taiwan, Japan, Europe, and Southeast Asia, providing equipment, process expertise, and ongoing customer support. Founded in 1980 and headquartered in Fremont, California, Lam Research today plays a central role in enabling advanced semiconductor manufacturing nodes that underpin computing, data center, mobile, and other high-performance electronic applications.

Runs with full report Generated: Aug 1, 2026 12:17am
Price Overview
Price at report time
$293.02
as of Aug 1, 12:28am (22d ago)
Change · Aug 1
-4.70 (-1.58%)
Day Range
$292.94 – $318.40
52-Week Range
$90.94 – $438.50
50-Day MA
$337.92
200-Day MA
$241.07
Volume
12,544,424.00
Right now · live
Log in to get the live feed
Members see the real-time price and the move since this report (over 22d).
Share Structure
Outstanding 1,251,278,000.00
Float 1,245,593,727.00
Free Float 99.5%
High free float — 99.5% of shares trade freely, ~0.5% held by insiders/institutions
Very liquid — most shares trade freely. Low insider ownership can mean less management alignment, but makes large position sizing straightforward.
Price History (1 Year)
Last updated: Aug 1, 2026 12:28am (22d ago)
Revenue & Net Income Trend
The directional story — useful even when net income is negative.
Last updated: Aug 1, 2026 12:28am (22d ago)
Revenue
The top line — total sales before any costs or taxes are subtracted. A measure of how much business the company is doing.
Net Income
The bottom line — profit left after subtracting all expenses, interest, and taxes from revenue. Reflects accounting profitability, but includes non-cash items like depreciation, so it isn't the same as cash earned.
Operating Cash Flow
The real cash generated by the day-to-day business — selling products, paying suppliers, collecting from customers. Calculated from net income by adding back non-cash items and adjusting for timing (unpaid bills, unsold inventory). When OCF consistently lags net income, the reported profit may not be converting to real money.
Period Revenue Net Income Net Margin YoY/QoQ
Key Metrics
TD Twelve Data statement HEX SEC filing
Industry comparison last run: Aug 1, 2026 12:14am
P/E Ratio (Price per dollar of earnings)
HEX
Stock Price / EPS (Diluted)
71.74
Stock Price: $293.02
EPS (Diluted): 4.15
P/B Ratio (Price vs net asset value)
HEX
Stock Price / Book Value Per Share
38.95
Stock Price: $293.02
Total Equity: $9.86B
Shares: 1,290,142,000
EV/EBITDA (Total value vs operating profit)
HEX
Enterprise Value / EBITDA
49.89
Market Cap: $366.65B
Total Debt: $4.47B
Cash: $6.39B
EBITDA: $6.29B
Enterprise Value (Takeover price (cap + debt - cash))
HEX
Market Cap + Total Debt - Cash
$313.7B
Market Cap: $366.65B
Total Debt: $4.47B
Cash: $6.39B
Gross Margin (Revenue left after direct costs)
HEX
Gross Profit / Revenue
48.7%
Gross Profit: $8.98B
Revenue: $18.44B
Operating Margin (Revenue left after all operations)
HEX
Operating Income / Revenue
32.0%
Operating Income: $5.90B
Revenue: $18.44B
Net Margin (Revenue left as actual profit)
HEX
Net Income / Revenue
29.1%
Net Income: $5.36B
Revenue: $18.44B
ROE (Profit from shareholder equity)
HEX
Net Income / Total Equity
54.3%
Net Income: $5.36B
Total Equity: $9.86B
ROIC (Profit from all invested capital)
HEX
NOPAT / Invested Capital
66.8%
Operating Income: $5.90B
Tax Rate: 10.1%
Equity: $9.86B
Total Debt: $4.47B
Cash: $6.39B
Current Ratio (Can it pay short-term bills)
HEX
Current Assets / Current Liabilities
2.21
Current Assets: $14.52B
Current Liabilities: $6.57B
Debt/Equity (Leverage — debt vs equity)
HEX
Total Debt / Total Equity
0.45
Short-Term Debt: $749.67M
Long-Term Debt: $3.72B
Total Debt: $4.47B
Total Equity: $9.86B
Rev/Share (Top-line per share)
HEX
Revenue / Shares Outstanding
$14.29
Revenue: $18.44B
Shares: 1,290,142,000
Book Value/Share (Net assets per share)
HEX
(Total Assets - Total Liabilities) / Shares
$7.64
Total Equity: $9.86B
Shares: 1,290,142,000
FCF/Share (Real cash generated per share)
HEX
(Operating Cash Flow + CapEx) / Shares
$4.20
Operating CF: $6.17B
CapEx: -$759.19M
Shares: 1,290,142,000
CapEx is negative (outflow) — added to OCF to get FCF
Div Yield (Annual income from holding)
TD
Last Annual Dividend / Stock Price
0.3%
Last Dividend: $1.04
Stock Price: $293.02
Payout Ratio (Earnings paid out as dividends)
HEX
Dividends Paid / Net Income
21.5%
Dividends Paid: -$1.15B
Net Income: $5.36B
Industry Benchmarks
Last run: Aug 1, 2026 12:14am
Compares LRCX against LLM-researched typical ranges for its industry. One research call per industry, cached indefinitely — every stock in the same industry reuses the same baseline.
Income Statement (Annual)
Last updated: Aug 1, 2026 12:28am (22d ago)
Metric 2021 2022 2023 2024 2025
Revenue $14.6B $17.2B $17.4B $14.9B $18.4B
Cost of Revenue $7.8B $9.4B $9.7B $7.9B $9.5B
Gross Profit $6.8B $7.9B $7.8B $7.1B $9.0B
Operating Expenses $2.3B $2.5B $2.6B $2.8B $3.1B
Operating Income $4.5B $5.4B $5.2B $4.3B $5.9B
Net Income $3.9B $4.6B $4.5B $3.8B $5.4B
EBITDA $4.8B $5.7B $5.5B $4.6B $6.3B
EPS $27.22 $32.92 $33.30 $29.13 $4.17
EPS (Diluted) $26.90 $32.75 $33.21 $29.00 $4.15
Balance Sheet (Annual)
Last updated: Jul 31, 2026 9:09am (23d ago)
Metric 2021 2022 2023 2024 2025
Cash & Equivalents $4.4B $3.5B $5.3B $5.8B $6.4B
Total Current Assets $11.7B $12.3B $13.2B $12.9B $14.5B
Total Assets $15.9B $17.2B $18.8B $18.7B $21.3B
Current Liabilities $3.5B $4.6B $4.2B $4.3B $6.6B
Long-Term Debt $5.0B $5.0B $5.0B $4.5B $3.7B
Total Liabilities $9.9B $10.9B $10.6B $10.2B $11.5B
Total Equity $6.0B $6.3B $8.2B $8.5B $9.9B
Retained Earnings $14.7B $18.5B $22.0B $24.8B $29.0B
Cash Flow (Annual)
Last updated: Aug 1, 2026 12:28am (22d ago)
Metric 2021 2022 2023 2024 2025
Operating Cash Flow $3.6B $3.1B $5.2B $4.7B $6.2B
Capital Expenditure -$349.1M -$546.0M -$501.6M -$396.7M -$759.2M
Free Cash Flow $3.2B $2.6B $4.7B $4.3B $5.4B
Acquisitions (net) $0 $0 -$120.0M $0 $0
Net Debt Issued / (Repaid) $0 $0
Dividends Paid -$727.0M -$815.3M -$907.9M -$1.0B -$1.1B
Stock Buybacks -$2.7B -$3.9B -$2.0B -$2.8B -$3.4B
Net Change in Cash -$498.3M -$897.2M $1.8B $263.4M $556.9M
Growth Trends (YoY %)
Last updated: Aug 1, 2026 12:28am (22d ago)
Metric 2022 2023 2024 2025
Revenue Growth +17.8% +1.2% -14.5% +23.7%
Gross Profit Growth +15.7% -1.2% -9.3% +27.3%
Operating Income Growth +20.1% -3.8% -17.6% +38.4%
Net Income Growth +17.8% -2.0% -15.1% +40.0%
EBITDA Growth +19.3% -3.5% -16.2% +36.0%
Dividend History (Last 20)
Last updated: Jul 31, 2026 9:09am (23d ago)
Date Dividend Declaration Record Payment
2026-06-17 $0.26
2026-03-04 $0.26
2025-12-03 $0.26
2025-09-24 $0.26
2025-06-18 $0.23
2025-03-05 $0.23
2024-12-11 $0.23
2024-09-17 $0.23
2024-06-18 $0.20
2024-03-12 $0.20
2023-12-12 $0.20
2023-09-12 $0.20
2023-06-13 $0.17
2023-03-14 $0.17
2022-12-13 $0.17
2022-09-13 $0.17
2022-06-14 $0.15
2022-03-15 $0.15
2021-12-14 $0.15
2021-09-27 $0.15
0Company Classification 1Industry Landscape 2Company Momentum 3Forward Projection 4aDCF Valuation 4bEarnings Power Value 4cAnchored PE 4dReverse DCF 4eRevenue-Based DCF 4fAnchored P/S 4gScenario Analysis 4hDividend Discount Model 4iBook Value Analysis 4jInsider Activity 4fCash Flow Quality 4gDebt Maturity Risk 4hMacro Environment 4iSector Intelligence 4jRevenue Confidence 4kSensitivity Analysis 4lSector Demand Cycle 5AI Investigation 5bThesis Evaluation 6Valuation Synthesis
computed not applicable 18 computed · 6 not applicable
Narrative Economics
The story the market is telling about this stock — the intangible X-factor (founder mythology, cult dynamics, TAM-of-imagination) that moves price beyond what cash flows alone explain. After Shiller, Narrative Economics.
No narrative profile yet for LRCX — it's generated by the pipeline (market-narrative step).
Claude Reading
Independent analyst synthesis · claude-opus-4-7 · generated 2026-08-01 00:27:28
Verdict Overvalued but the synthesis $131 fair value is stale — run-rate earnings put fair value at $180-220; wait for either a cyclical pullback or Q2 confirmation of the $5.8B+ revenue base before buying.

The raw quarterly trajectory is more bullish than the "decelerating" tag suggests. Revenue went $3.87B → $4.17B → $4.38B → $4.72B → $5.17B → $5.32B → $5.34B → $5.84B across eight quarters — that's 51% growth in two years with the latest print an 9.4% sequential pop after a two-quarter plateau. Net income margins have climbed from 26.4% to 31.2%, and TTM net income is now roughly $6.7B versus the FY2025 $5.36B, meaning the trailing P/E on run-rate earnings is closer to ~55x, not the stale 71.7x in the file. That's still expensive, but the synthesis DCF anchoring on $5.36B is already a quarter or two behind reality. Annualizing the Q1 2026 print gets you ~$23.4B revenue and ~$7.3B net income — the business is not mid-cycle, it's inflecting.

Where I partially disagree with the synthesis: the $83.70 composite fair value and even the $130.88 signal-adjusted figure look mechanically anchored to trailing multiples during weaker fab-capex years (FY2024 revenue $14.91B was a cyclical trough). LRCX's ROIC of 67% and ROE of 54% are extraordinary — this is not a normal capital equipment vendor, it's a duopoly-adjacent (with AMAT and TEL) toolmaker with genuine pricing power in etch/deposition for 3D NAND and gate-all-around logic. A "fair" multiple for a business compounding earnings 40% YoY with 32% operating margins and 88% FCF conversion is not 15x. That said, the market-forces read on cyclical peak risk is legitimate — WFE spend historically mean-reverts, and the last two quarters (5.32/5.34) hinted at a plateau before Q1 2026 reaccelerated. One quarter doesn't make a trend.

The contrarian argument the models are underweighting: China. LRCX derived ~40%+ of revenue from China in recent periods, much of it mature-node fab buildout that is (a) subsidy-driven and finite, and (b) increasingly at risk from tightening US export controls. If Chinese domestic WFE spend rolls over in 2026-2027 as the initial capacity build completes, the AI/HBM tailwind won't fully offset it — HBM is a small slice of total etch/deposition TAM. The insider activity is thin (three transactions, one option-exercise-and-dump pattern) but notably there are zero insider buys at $293. The debt/equity of 0.45 and 2.2x current ratio are fine; balance sheet is not the risk. The risk is that Q1 2026's 9.4% sequential jump is a China pull-forward ahead of stricter controls, not a durable step-up. Also worth flagging: the file shows a 2026-03-29 quarter and 2026-07 insider dates, which looks like fiscal-year labeling drift or forward-dated data — worth verifying before leaning too hard on the "acceleration" read.

Net: I dissent from the synthesis's -55% overvaluation call as too aggressive, but agree with the directional read that LRCX is expensive. On run-rate ~$7.3B NI and a defensible 30-35x multiple for a best-in-class semicap franchise in an AI capex upcycle, fair value sits in the $180-220 range, not $131 and not $293. That's still ~25-35% downside from spot, so I land on overvalued but with a much narrower gap than the composite suggests. The narrative layer's "70% of work above DCF" framing is directionally right but the DCF is stale. I'd want to see either (a) a pullback to the $200-220 zone or (b) a second consecutive quarter confirming the $5.8B+ revenue run-rate is durable before committing capital. Momentum traders can ride it; value-disciplined buyers should wait. The market-forces "better entry in 6-12 months" call is the most sensible read in the file.

GPT Reading
Independent reading · gpt-5.4 · generated 2026-08-01 00:27:42
Verdict Overvalued at $293 — a great semiconductor equipment franchise, but fair value looks closer to $170-$210 unless annual earnings power proves it can sustainably exceed $7.5B.

Lam’s operating picture is excellent; the stock’s valuation is the problem. The business has clearly re-accelerated: quarterly revenue climbed from $3.87B in June 2024 to $5.84B in March 2026, up 51% in seven quarters, while net income rose from $1.02B to $1.83B, and margins expanded from 26.4% to 31.2%. On a trailing run-rate basis, Lam now looks closer to a $22B-$23B revenue company than the $18.44B annual figure for FY2025, and the earnings power embedded in the last four quarters is roughly $6.2B-$6.7B depending on how you normalize the unusually strong June 2025 margin. That is not a weak cyclical name. It is a high-quality equipment franchise with real operating leverage, strong gross margin near 49%, operating margin 32%, and free cash flow of $5.41B against just $759M of capex. The balance sheet is also clean, with $6.39B cash versus $4.47B debt. If I looked only at business quality, I would want to own it.

But the market cap of $366.65B asks you to pay an extreme price even for that quality. Against FY2025 revenue of $18.44B, the stock trades at 20.8x sales; against FY2025 net income of $5.36B, the quoted P/E is 71.7x; EV/EBITDA is nearly 50x. Even if those multiples are distorted by timing, the distortion is nowhere near large enough to make them reasonable. Suppose Lam earns $7B in a stronger forward year; the stock would still be above 50x earnings. For a semiconductor equipment company whose annual revenue was $17.43B in 2023, dipped to $14.91B in 2024, then recovered to $18.44B in 2025, that is far beyond a normal premium for cyclicality-adjusted quality. The key contradiction in the data is that the recent operating acceleration is real, but the long-horizon growth record is not remotely consistent with a $367B valuation: revenue CAGR is just 2.9%, earnings CAGR 9%, and free cash flow CAGR 7.6%. This is a superb cyclical compounder, not a software-like perpetual grower.

The strongest bull case is that the old cyclicality framework is breaking because process intensity is rising structurally. A smart opponent would point to the latest five quarters: revenue went $4.38B, $4.72B, $5.17B, $5.32B, $5.34B, then $5.84B, showing not just rebound but sustained progression; net margins have held around 28%-33% throughout. ROIC at 66.8% and ROE at 54.3% are elite. With AI, HBM, advanced logic, and etch/deposition intensity all increasing, Lam may deserve a permanently higher multiple than in prior cycles. On that view, using FY2025 earnings or revenue understates current earning power, and the market is valuing a future $8B-$10B earnings business rather than a normalized $5B-$6B one. That is the best argument, and it is not crazy.

I still weigh it differently because even generous forward assumptions do not bridge the valuation gap. At $366.65B, a 30x multiple on $10B of earnings would still only justify roughly the current price, and $10B would require almost doubling FY2025 profit from an already strong margin base. For a company that has never shown anything close to that level in the figures provided, that is a heroic underwriting case, not a base case. The insider tape is not a major signal, but recent sales do not help argue the stock is obviously cheap. More importantly, the business remains exposed to capex concentration and geopolitics whether or not the current cycle is healthier than past ones. I can accept that Lam deserves a premium to historical semiconductor equipment multiples; I cannot accept 50x-70x style optics for a company with this revenue history and this degree of cyclicality.

What would change my mind is not another “good quarter”; it would be proof that the earnings base is structurally much higher than I think. If Lam can sustain quarterly revenue above $5.8B for several quarters, keep net margin around 30%, and convert that into annual net income above $7.5B with free cash flow also moving toward $7B, then the multiple would compress enough to make a premium case more credible. Conversely, if revenue stalls in the low-$5B range or margins retreat back toward the mid-20s, the current valuation should de-rate sharply. For now, the stock is pricing in the bullish end-state already.

Grok Reading
Independent reading · grok-4.5 · generated 2026-08-01 00:28:16
Verdict Overvalued at $293 — high-quality compounder priced for multi-year supercycle perfection; fair value closer to $130–180 on mid-cycle earnings

Lam Research is executing at a high level and the numbers make that plain. Quarterly revenue has climbed from $3.87B in the June 2024 quarter to $5.84B in the March 2026 quarter, a clean stair-step recovery that has annualized the run-rate near $23B. Net margins have expanded from the mid-20s into the 29–31% range, with the latest print at 31.2% on $1.83B of net income. Full-year 2025 delivered $18.44B revenue and $5.36B of net income after the 2024 trough of $14.91B, free cash flow of $5.41B against only $759M of capex, and a net-cash balance sheet ($6.39B cash versus $4.47B debt). Returns are elite—ROE 54%, ROIC 67%—so the operating machine itself is not in dispute. The story the price tells is different: at $293 the stock trades at 72x trailing earnings, 21x sales, and nearly 50x EV/EBITDA. Even on the current quarterly run-rate annualized (~$7B net income) you are still paying roughly 50x. That multiple only works if the AI-driven etch and deposition supercycle delivers mid-teens-plus compound growth for several years without a cyclical air pocket. The longer-term CAGRs in the briefing (revenue 2.9%, FCF 7.6%) remind you that this industry still mean-reverts; the 23.7% recent revenue growth and 40% earnings growth are real but are being capitalized as if they are the new permanent slope.

The quantitative models calling a mid-$80s to ~$131 fair value look directionally right once you normalize for mid-cycle rather than peak-cycle earnings power. The narrative layer is doing most of the heavy lifting above that anchor—the “irreplaceable chokepoint” framing and AI capex permanence—yet semiconductor equipment has never been a platform monopoly in the software sense; it remains a concentrated but still cyclical capital-goods business with China export-control overhang and customer concentration at TSMC, Samsung, and the memory makers. Secondary signals already flag decelerating quarterly trend confidence and macro headwinds. At these multiples, any pause in wafer-fab equipment spend or a second year of flattish rather than accelerating growth produces multiple compression that swamps the fundamental progress.

The strongest case against an overvalued call is straightforward and data-backed. Sequential growth has not stalled: four straight quarters above $5B, margins holding or expanding, and the 2025 recovery already surpassing the prior 2022–2023 peak revenues. Share gains in high-aspect-ratio etch and advanced packaging tied to HBM and leading-edge logic are structural, not purely cyclical. A 67% ROIC business that converts nearly all operating profit into free cash flow deserves a premium, and peer multiples in the group (especially KLAC) show the market is willing to pay for that quality. If the $5.84B quarter is the early innings of a multi-year AI fab build rather than the middle, then 2026–2028 earnings could compound fast enough to grow into a 35–40x forward multiple and make today’s price look merely expensive rather than absurd. Insider activity is neutral rather than distributive in a worrying way, and the balance sheet gives management full flexibility for buybacks or M&A. That bull case is coherent; it simply requires the supercycle duration assumption to be correct for three-plus years.

What flips the verdict is concrete: two more quarters that push revenue through $6.5B+ while holding net margins at or above 30%, or explicit multi-year company guidance that embeds 18–20% revenue CAGR with stable pricing, would force a re-rating of the earnings power and justify a higher anchor. Conversely, a single quarter that shows sequential decline back toward $5B or margin compression below 27% on China or memory digression would confirm the cycle call and open substantial downside toward the $150–180 zone.

Big-3 Panel — where each AI stands
Each AI above independently stated a direction (undervalued, fairly valued, or overvalued) and how strongly it believes it (conviction, 0–5). We combine those into a Bull-Bear Index on a 0–10 scale: 5 is neutral, 10 is maximum bullish (undervalued at full conviction), 0 is maximum bearish. We compute the score ourselves with the same arithmetic for every seat — the models never grade their own bullishness — so the three are directly comparable. Δ shows how far each seat sits from the panel average of 1.3; a large Δ marks the dissenting voice, usually the one worth reading.
Claude claude-opus-4-7 2.0
overvalued · conviction 3/5 · Δ +0.7 vs panel · self: 4.0
GPT gpt-5.4 1.0
overvalued · conviction 4/5 · Δ -0.3 vs panel · self: 3.0
Grok grok-4.5 1.0
overvalued · conviction 4/5 · Δ -0.3 vs panel · self: 3.0
Advanced Analysis Forensic deep-dive · separate lenses
Separate reads — Company Quality (is it a great business?), Valuation (is it mispriced?), and General Sentiment (how macro + narrative are pushing it), kept deliberately apart · 2026-08-01 00:42:34
Delvantic - Cairn AI
Quality name, do not chase — wait for a dip to build 7/10
Fortress-quality WFE leader (Q+77) trading ~30% above deserved value (V-61) on a euphoric AI-capex tailwind (S+75) — great business, wrong price, hot tape.
The cruxWhether cycle-peak FY25 earnings ($5.36B NI, $5.41B FCF) are the new baseline or a top that mean-reverts — the entire 40% gap between $293 spot and $209 anchored-PE hinges on this single question.
Forensic checks Derived mechanically from LRCX's filed financials — not from the AI lenses
Liquidity & RunwaySelf-Funding
DilutionHeavy Dilution
Earnings QualityHigh Earnings Quality
The four lensesswitch a tab for its full read — score + evidence
Company Quality
+77
Fortress
edge √Σ 161 · risk √Σ 59 · conf 8/10

Lam Research's operating performance in FY2025 is exceptional: revenue $18.44B (record), gross margin 48.7% (multi-year high), operating margin 32.0%, net income $5.36B, and FCF $5.41B — OCF/NI of 1.02x and accruals of -0.2% of assets corroborate that reported earnings are backed by cash. Altman Z of 23.28 and Beneish M of -2.34 leave no mechanical red flags. Liquid cash $6.39B against modest net debt yields net cash of ~$1.92B; the business is self-funding many times over.

Strengths 5
m85
Elite margin structure at scale
FY2025 GM 48.7%, OpM 32.0%, net margin ~29% on $18.44B revenue — top-tier for capital equipment and expanding, not compressing.
m80
Cash generation matches earnings
FCF $5.41B vs net income $5.36B; OCF/NI 1.02x and accruals -0.2% of assets — earnings are cash, not paper.
m70
Fortress balance sheet
Liquid cash $6.39B, net cash ~$1.92B, Altman Z 23.28. Zero survival risk; capacity to invest through cycles.
m65
Per-share discipline via buybacks
Buyback/SBC ratio 1058% and pre-split share count declined 145.3M to 132.0M over 2021-2024; SBC only 1.9% of revenue.
m55
Clean earnings-quality diagnostics
Beneish M -2.34 (well below manipulation threshold), no accrual build, OCF conversion above 1x — mechanical checks find nothing.
Concerns 3
m45
Cyclicality is real
Revenue swung from $17.43B (2023) to $14.91B (2024) then to $18.44B (2025) — a ~14% peak-to-trough drop. Operating income and FCF track WFE cycle; not a compounder that grows every year.
m35
Customer/geographic concentration risk (inferred)
WFE is a handful of buyers (TSMC, Samsung, SK Hynix, Micron, Intel, plus China memory/logic). Export controls to China are a known overhang requiring filing-level verification.
m15
Dilution flag is a false positive
The 72.6% diluted share CAGR reflects the 10-for-1 split in Oct 2024, not economic dilution. Noted so it is not double-counted as a real concern.
This is a high-quality business — one of the two or three critical WFE toolmakers with 48.7% gross margins, near-perfect cash conversion, and a genuinely strong balance sheet. The dilution alarm is a mechanical misread of the stock split; underlying share count has been shrinking. What keeps me from calling it a top-decile fortress is not accounting or capital-allocation weakness but structural cyclicality and geopolitical exposure that the raw evidence itself displays (a 14% revenue drop in 2024). Sit it comfortably in the high-80s: robust, well-run, and one of the cleaner earnings-quality profiles I would expect to see anywhere.
Verify before trusting this (6)
  • Confirm the FY2025 share count reflects the Oct 2024 10-for-1 split (not real dilution)
  • China revenue exposure and impact of latest US export controls (10-K risk factors and geographic segment)
  • Customer concentration disclosure — top 3 customers as % of revenue
  • Memory vs foundry/logic revenue mix and services (CSBG) share as stability buffer
  • Any convertible debt or hedge overlay affecting diluted share count math
  • Backlog and deferred revenue trends as forward demand signal
Valuation / Mispricing
-61
Rich
edge √Σ 36 · risk √Σ 107 · conf 6/10
Price $293 vs deserved value roughly $200-230 on a quality-adjusted read (well above the $84 composite but below the $293 tape) — call it 25-30% overvalued, no margin of safety. attractive below $210.00

The e2e stack lands well below the market: DCF $48.73, EPV floor $28.82, anchored-PE $208.50, composite $83.70, signal-adjusted $130.88. Even taking the most generous input (anchored-PE at $208.50, which implicitly assumes current cycle earnings are durable), the stock at $293.02 trades ~40% above it. The DCF and EPV numbers look punitive for a Fortress-quality WFE oligopolist with 48.7% gross margins and clean cash conversion, so I discount them as too austere on cycle-peak cash flows — but the direction is unambiguous: every method says deserved value is below spot.

Cheap signals 2
m30
Fortress quality deserves a premium to DCF/EPV
48.7% gross margins, near-perfect cash conversion, net-cash balance sheet, and duopoly-adjacent position in etch/deposition mean $49 DCF and $29 EPV understate deserved value — the real deserved number is meaningfully higher, just not $293.
m20
Secular AI/leading-edge capex tailwind is real
Advanced-node and HBM intensity structurally lift baseline WFE demand versus prior cycles — supports a higher trough multiple than history.
Rich / priced-in 3
m72
Every method below spot
DCF $49, EPV $29, anchored-PE $209, composite $84, signal-adjusted $131 — all materially under the $293 price. Even the most lenient method implies ~29% downside.
m68
Priced for supercycle permanence
At ~$367B market cap on cycle-peak WFE spend, the tape embeds sustained 20%+ growth and no mean reversion in a historically lumpy equipment cycle.
m40
Geopolitical/customer-concentration tail not discounted
China exposure, export controls, and a handful of leading-edge fab customers create earnings variance the current multiple does not reflect.
I like the business but I do not like the price. Anchored-PE at $209 is the fairest of the three methods for a quality compounder, and even that is 29% below spot; the DCF and EPV are too harsh but confirm the direction. I need this closer to $210 — a ~28% pullback — before the risk/reward on a cyclical at cycle-peak earnings makes sense. Today it is a hold-if-owned, do-not-chase.
Verify before trusting this (4)
  • Forward WFE guidance and China revenue mix in latest 10-Q/transcript
  • Segment split leading-edge vs mature-node to test cycle-peak assumption
  • Buyback cadence and any one-time gains inflating trailing EPS the anchored-PE method leans on
  • Management commentary on 2025-26 capex intentions from top-3 customers
General Sentiment
+75
Strong Tailwind
tail √Σ 141 · head √Σ 43 · conf 8/10

The dominant force on LRCX right now is a raging AI-semicap narrative that just got a fresh accelerant: a Q2 beat plus an $8.1B forecast that triggered an 18.9% single-day move. Coverage is uniformly bullish (chips led a Nasdaq rebound, memory pricing crunch flagged by Amazon/Apple, Mizuho pushing back on China memory fears), and LRCX sits squarely at the chokepoint of the deposition/etch story the market is currently in love with. Beta 1.81 means this name amplifies risk-on days, and today's tape is exactly that. The macro backdrop is mildly supportive (regime +22, VIX 16, S&P near highs) though rates at 4.68% and market PE 26.2 are a quiet crosswind for high-multiple cyclicals. But that macro drag is being completely overwhelmed by the narrative and news flow. The only meaningful headwind is that this is a moderate-durability story (semicap is lumpy, cult coefficient only medium) and price is running well ahead of mid-cycle earnings — meaning when the narrative cracks, it cracks hard. For now, though, nothing in the 72h flow suggests a crack; it suggests the opposite.

Tailwinds 4
m92
Blowout print + $8.1B AI forecast
The 18.9% earnings-day surge with guidance well above expectations is the single biggest sentiment force on the tape right now — it validates the platform-monopoly narrative in real time.
m80
AI-semicap narrative in full euphoria mode
Strong-intensity platform-monopoly story with chips leading a Nasdaq rebound and memory-pricing crunch headlines — LRCX is a first-derivative beneficiary of the exact story the market is buying.
m55
High beta amplifies a risk-on tape
Beta 1.81 into a +22 regime with Nasdaq posting its best day since May 2025 — LRCX mechanically catches more upside than the average name in this tape.
m45
China-memory fear pushback
Mizuho note explicitly dismissing CXMT DRAM flood fears removes a recurring overhang on the semicap complex; sell-side tone is actively defending the group.
Headwinds 2
m35
Moderate durability, medium cult
Semicap cycles mean-revert and the narrative is not a cult-grade lock-in — any AI-capex hesitation headline would hit a name priced at a 124% premium to mid-cycle DCF very quickly.
m25
Rates and market PE crosswind
10y at 4.68% and market PE 26.2 are a quiet drag on high-multiple cyclicals, but currently drowned out by narrative flow.
This is about as clean a strong-tailwind setup as you get: a platform-monopoly narrative running hot, a fresh blowout print with an AI-scale forecast, chips leading the tape, sell-side actively defending the group, and a 1.81 beta amplifying every risk-on session. The valuation overhang and cycle-lumpiness are real but they belong to the Valuation lens, not here. Net pressure is decisively up, and the only reason I do not go to full 10 confidence is that narrative-driven post-earnings pops in high-beta semis can reverse fast if any China or capex-hesitation headline lands.
Verify before trusting this (4)
  • Whether the post-earnings gap holds through next week or fades on profit-taking
  • Any China export-control or CXMT capacity headline that could crack the semicap narrative
  • Sell-side target revisions in the next 5 trading days — magnitude of upgrades
  • VIX behavior and whether the risk-on tape persists or the Fed-day volatility returns
The market-wide tape + this name's exposure to it (beta / sector / narrative durability). Context on the non-fundamental pressure — not a call on the business or the price. processId: detail-general-sentiment
Growth Outlook
not run

This lens hasn't been run for this ticker yet.

The forward growth verdict — is the business itself likely to grow (next 2 quarters / year 1 / years 2–3), judged against its category and against printed expectations. The full horizon ladder + creme renders on the Growth Outlook card above. Not a call on the price (Valuation owns that) or the tape (Sentiment owns that).
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Lenses kept deliberately separate — Company Quality (price-agnostic), Valuation (price-conditional), General Sentiment (non-fundamental macro/narrative pressure), and Growth Outlook (the forward growth verdict). The scores are not blended. Filing-level items (convertibles, lock-ups, customer concentration) are v2 — see each lens's "verify."
Price Prediction
Lower -8.5% v0.6.0 View full prediction →

When we made this prediction on Aug 1, 2026, LRCX was $293.02. We expect it to be $268.00 by Feb 2027, and we consider it great value under $210.00. This is an early model (v0.6.0) — the direction is more reliable than the exact price. Made Aug 1, 2026.

Price when predicted$293.02
Our estimate for Feb 2027$268.00-8.5%
Great value below$210.00
Price history shown (6 Months)

Blue is our prediction, starting the day we made it. Grey is a slower route to the same place — the same destination, taking longer. Black is the actual price, so you can see how we are doing.

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My Notes personal — only you see this
v1.1.562 · 9b2927c4 · 2026-08-22 16:52:06