CluenexLam Research Corporation LRCX
Lam Research Corporation scores excellent on business quality (8.3 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Lam Research Corporation does
Lam Research builds the semiconductor fabrication equipment that chipmakers use to etch and deposit microscopic layers on silicon wafers. Memory and logic manufacturers pay billions for these specialized chambers to build advanced nodes.
- What it does best
Lam dominates wafer etch and deposition for 3D NAND flash memory, capturing a massive share of the equipment market. This hardware lock-in is protected by thousands of patents and deep fab integration, making tool replacement cost-prohibitive for chipmakers.
- The main risk
Geopolitical export restrictions on advanced semiconductor equipment sales to key Asian markets threaten a major portion of system shipments, risking sharp revenue contractions if trade barriers widen.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 35.3% with an exceptional 67% ROE, showing that the business scales efficiently as equipment volume expands.
High switching costs and proprietary process technology anchor its wide moat, reflected in an operating margin ranking in the top decile of its sector.
Revenue grew 26% to $23.2B, accelerating sharply compared to prior annual stagnation and outpacing the broader sector's top quartile.
Debt-to-equity sits at 0.3 with interest coverage over 52x, meaning debt costs are negligible. Free cash flow reached $4.9B, supporting strong capital returns.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $3.0M outside pre-planned sales.
Our sealed record on LRCX
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Lam Research Corporation scores excellent on the Cluenex quality check (8.3 of 10), measured against its own industry. Profitability is strong, moat strong, growth fast and financial health strong.
In the last 90 days of SEC Form 4 filings: 1 sold $3.0M outside pre-planned sales.
Oct 21, 2026.
See LRCX today
- Today's verdict on LRCX, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Lam Research Corporation (LRCX)”, https://cluenex.com/stocks/lrcx/, data as of Oct 10, 2026.