Morgan Stanley Downgrades Lam Research (LRCX) to Underweight with a $92 PT

Lam Research Corporation (NASDAQ:LRCX) is one of the best QQQ stocks to buy right now. On September 2, Morgan Stanley analyst Shane Brett downgraded Lam Research Corporation to Underweight from Equal Weight with a price target of $92, down from $94. Lam Research Corporation regained market share, led by NAND, China, and share gains at TSM.

Morgan Stanley Downgrades Lam Research (LRCX) to Underweight with a $92 PT

Earlier in FQ4 2025, the company’s revenue for the quarter was $5.17 billion, which was a 9.6% increase from the previous quarter. The company also reported strong profitability, with a non-GAAP gross margin of 50.3%, up from 49.0% in the previous quarter. The company’s financial position also strengthened, with cash reserves increasing to $6.4 billion.

Deferred revenue grew to $2.681 billion, indicating strong future sales potential. The company’s non-GAAP operating income as a percentage of revenue rose to 34.4%. Lam Research also raised its forecast for the wafer fabrication equipment/WFE market for 2025 to $105 billion, attributing the increase to improved demand from China.

Lam Research Corporation (NASDAQ:LRCX) designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of ICs in the US, China, Korea, Taiwan, Japan, Southeast Asia, and Europe.

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.