Is Stronger Earnings, AI R&D Push and New Leadership Altering The Investment Case For Lam Research (LRCX)?

• In late January 2026, Lam Research reported higher quarterly and six-month sales and net income compared with a year earlier, issued new revenue and earnings guidance for the March 2026 quarter, maintained its US$0.26 quarterly dividend, and announced leadership changes alongside a new director appointment and an expanded technology collaboration with CEA-Leti.
• Together, these moves highlight Lam’s effort to pair stronger financial performance with deeper R&D partnerships and refreshed leadership to support its role in advanced semiconductor manufacturing for AI and high-performance computing.
• We’ll now examine how Lam’s stronger earnings and guidance, underpinned by AI-related semiconductor demand, shape the company’s investment narrative.

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What Is Lam Research’s Investment Narrative?

To own Lam Research, you have to believe in the durability of wafer fab equipment demand tied to AI and high‑performance computing, and in Lam’s ability to defend its technology edge while earning high returns on capital. The latest quarter’s higher sales and net income, plus guidance for another solid March quarter, reinforce the near term earnings momentum that has supported the stock’s very strong multi‑year run and premium P/E. The maintained US$0.26 dividend signals confidence, but income remains a secondary part of the story. The new CEA‑Leti collaboration and addition of Cadence CEO Anirudh Devgan look incremental to Lam’s R&D and board bench strength rather than thesis‑changing, complementing existing catalysts more than creating new ones. The bigger tension for shareholders is how much AI‑related strength is already priced in, given rich multiples and recent insider selling.

However, one key risk around today’s valuation and insider activity is easy to overlook.

Lam Research’s share price has been on the slide but might be dropping deeper into value territory. Find out whether it’s a bargain at this price.

Exploring Other Perspectives

Twelve Simply Wall St Community fair value views run from US$83 to US$325, underlining very different expectations. Set that against Lam’s premium earnings multiple and AI exposure, and it is worth seeing how others weigh concentration, cyclicality and governance risks.

Explore 12 other fair value estimates on Lam Research – why the stock might be worth as much as 41% more than the current price!

Build Your Own Lam Research Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes – extraordinary investment returns rarely come from following the herd.

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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.

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