Summit Insights downgrades Lam Research stock rating to Hold from Buy

Published 31/07/2025, 06:54
Summit Insights downgrades Lam Research stock rating to Hold from Buy

Investing.com - Summit Insights downgraded Lam Research (NASDAQ:LRCX) from Buy to Hold on Thursday, citing expectations of moderating wafer fabrication equipment (WFE) spending in 2026. The stock, currently trading near its 52-week high with a market capitalization of $126.75 billion, has shown strong momentum with a 37.94% gain year-to-date.

The research firm maintained its positive outlook on technology upgrades driving outperformance in the second half of 2025. Summit Insights specifically noted industry transitions to Gate-All-Around (GAA), backside power, and dry EUV photo resist as potential growth drivers for Lam Research. According to InvestingPro, the company maintains a robust financial health score and has demonstrated strong revenue growth of 20.33% over the last twelve months.

While Summit Insights believes foundry spending can remain strong, the firm indicated it does not see catalysts from the logic market. The analyst also expects spending in NAND and DRAM memory segments to moderate from 2025 levels. Despite these concerns, Lam Research has maintained dividend payments for 12 consecutive years, with a 15% dividend growth rate in the latest period.

Summit Insights projects Lam Research stock will be an "inline performer" moving forward, noting a lack of catalysts in the near-to-medium term that could drive outperformance.

The downgrade comes as semiconductor equipment manufacturers face questions about the sustainability of current spending levels across various chip manufacturing segments beyond 2025.

In other recent news, Lam Research Corp . reported its fourth-quarter 2025 earnings, surpassing Wall Street expectations. The company posted a revenue of $5.17 billion, which exceeded the forecasted $4.99 billion. Additionally, earnings per share (EPS) came in at $1.33, outperforming the anticipated $1.20. These results highlight Lam Research’s strong financial performance for the quarter. No mergers or acquisitions have been reported recently. Analyst firms have not provided any upgrades or downgrades following the earnings announcement. Investors continue to monitor Lam Research for any further developments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.