Lam Research Corporation - Common Stock (LRCX) Stock Analysis — Latest Investor Quotes & Trade Calls

Caution Against Additional Buying After 40% Run Up

"We're no longer buying Lam.. We thought it was cheap in 2023, obviously with all the other fab equipment providers. we thought it was still cheap in 2024 and through most of 2025, but then, 40% ish run up in the last couple of months. We're now saying be patient with LAM Research. We're not selling, we still have our position in Lam. It's part of our Fab five basket and the larger basket we have in the wafer fab equipment companies. But maybe just after the runup, as of late exercise, a bit of patience. But the upshot here is, and we'll, we'll monitor this, but it does seem that maybe, some of these forward valuations are implying not as good earnings growth in calendar year 2026 as Lam might actually be gearing up for."

The speaker advises investors to exercise patience with Lam Research after a significant 40% run up, suggesting that while their current position is maintained, the elevated valuation implies caution on further buying until clearer earnings growth materializes in 2026.

Lamb Research Overvalued - Avoid Adding at Current Prices

-2.76%current return

"Now, I do believe Lamb Research had really strong earnings. I actually like them a lot and I believe there's a lot of growth opportunities. But why did the market not like it or why is the market not reacting as strongly? In my opinion, it's this. This is definitely a stock that is trading much higher than it normally does. So, the median forward PE ratio in about the past 5 years is roughly 20.35. Now, right now, the stock is trading at roughly 31.52. If I was honest, Lamb Research has definitely growth opportunities, but I think the risk-to-reward ratio is not in my favor. So, if I wanted to add to Lamb Research, this is not the time I would do so."

The speaker highlights Lamb Research's strong earnings and growth potential yet cautions investors against buying at current levels due to an overvalued trading price compared to historical PE ratios, indicating an unfavorable risk-to-reward scenario.