Lam Research Corporation (LRCX)

FairStock Score: 75/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the 2026-10-26 close of $237.50, Lam Research is a high-quality cyclical business priced for prosperity. The filings show real momentum: in fiscal Q1 2027 (quarter ended 2026-09-27), revenue was $8.2B and net income $2.8B, with diluted EPS of $2.19. For FY2026, revenue was $23.2B, net income $7.3B, and diluted EPS $5.76, up from FY2025's $18.4B revenue, $5.4B net income, and $4.15 EPS. FairStock's calculated ROE of 65.07%, ROCE of 22.84%, debt-to-equity of 0.33, Piotroski F-score of 8/9, and Altman Z-score of 18.81 point to financial strength. The company also generated $6.5B in trailing free cash flow. But Graham would flinch at the price: FairStock's P/E is 41.23, P/B 23.82, EV/EBITDA 32.23, FCF yield only 2.2%, and Graham Number $35.95 against $237.50, a -540.06% margin of safety. The PEG of 1.23 is not extreme if growth persists, and the Lynch category is CYCLICAL because semiconductor equipment earnings follow the economic cycle. The wide 52-week range of $135.50-$438.50 and beta of 1.86 reinforce that this is not a stable consumer franchise. I see a fine business, but the price already discounts continued strong growth; a cyclical pause would leave little valuation cushion.

In plain English: Lam Research makes machines and services used to make computer chips. The business looks strong: sales and profits are growing, returns are high, and debt is modest. But at the recent price the stock looks expensive compared with current profits and the value of its assets, and the chip equipment industry rises and falls with the economy.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-09-27) · fiscal Q3 2026 10-Q (period ended 2026-03-29) · fiscal Q2 2026 10-Q (period ended 2025-12-28) · fiscal Q1 2026 10-Q (period ended 2025-09-28) · FY2026 10-K (period ended 2026-06-28) · FY2025 10-K (period ended 2025-06-29) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer