Why Lam Research Stock Crumbled by 3% Today

Core Viewpoint - Lam Research is facing challenges in growth potential, leading to a downgrade in stock recommendation by Morgan Stanley's analyst Shane Brett, who has shifted from an equalweight to an underweight rating [2][4]. Group 1: Stock Performance - Lam Research's share price declined by 3% in a recent trading session, which is significantly more than the S&P 500 index's 0.7% dip [1]. - The analyst has adjusted the price target for Lam Research's shares from $94 to $92 [2]. Group 2: Analyst Insights - Analyst Shane Brett believes that Lam Research will struggle to maintain high growth levels through 2026 [4]. - Two main pressures identified on Lam Research's business include difficulties in growing market share in China and concerns regarding the NAND memory business, which may not have sufficient potential to enhance the company's fundamentals [5]. Group 3: Management and Business Health - Despite the negative outlook, Brett does not find any fundamental issues with Lam Research's management or business operations; his concerns are primarily focused on the customer base and the diminishing prospects of the NAND segment [6].