Lam Research shares have fallen 15.6% over the past month, underperforming the Zacks Computer and Technology sector's 4.4% decline. Peers ASML Holding, Applied Materials, and KLA Corporation also dropped 10%, 12.7%, and 21.6% respectively, indicating a sector-wide pullback rather than company-specific weakness. The sell-off is driven by concerns over returns on massive AI investments and profit-taking after a strong rally earlier in 2026. Despite the decline, Lam Research's business remains strong, with record fourth-quarter fiscal 2026 revenue of $6.72 billion, up 30% year over year, and non-GAAP earnings of $1.82 per share, beating estimates. The company expects advanced packaging revenues to grow more than 70% in 2026, and Wall Street projects fiscal 2027 and 2028 revenue growth of 25.4% and 31.1%, respectively. Lam Research currently carries a Zacks Rank of 1, or Strong Buy.
Applied Materials Inc
ASML Holding N.V.
KLA Corporation
Lam Research Corp