Morgan Stanley Downgrades Lam Research Corporation (LRCX) from ‘Equal Weight’ to ‘Underweight’, Reduces PT

Lam Research Corporation (NASDAQ:LRCX) is included in our list of the 14 Tech Stocks to Sell Now According to Ken Fisher.

Morgan Stanley Downgrades Lam Research Corporation (LRCX) from ‘Equal Weight’ to ‘Underweight’, Reduces PT

Morgan Stanley downgraded Lam Research Corporation (NASDAQ:LRCX) from ‘Equal Weight’ to ‘Underweight’ on September 1, 2025, reducing its price target from $94 to $92. The investment firm cites the company’s key growth drivers, China logic and NAND memory, which are expected to slow sharply following two robust years. Meanwhile, system shipment growth is projected to decline from 82% in 2025 to 3% in 2026.

Morgan Stanley did acknowledge Lam Research Corporation (NASDAQ:LRCX)’s strong track record, particularly a 23.68% revenue surge over the past year and significant NAND market share gains. However, the investment firm believes that weakening end-markets, especially in China, could impact its future performance.

Lam Research Corporation (NASDAQ:LRCX) offers deposition, etch, and cleaning solutions critical to integrated circuit fabrication by providing semiconductor processing equipment globally. It is one of the stocks to sell.

While we acknowledge the potential of LRCX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LRCX and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.