Lam ResearchLRCX +5.46%85 Gross Margin % is 49.83% as of Mar. 2026, which is 9% above its 10-year median of 45.79. GuruFocus rates LRCX with a GF Score™ of 85/100 and a GF Value™ of $131.10 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,009 Semiconductors companies, Lam Research ranks better than 82.85% on this metric.
The historical rank and industry rank for Lam Research's Gross Margin % or its related term are showing as below:
LRCX'
s Gross Margin % Range Over the Past 10 Years
Min: 44.49 Med: 45.79 Max: 49.98
Current: 49.98
During the past 13 years, the highestGross Margin % of Lam Research was 49.98%. The lowest was 44.49%. And the median was 45.79%.
LRCX's Gross Margin % is ranked better than 82.85% of 1009
companies
in the Semiconductors industry
Industry Median: 29.61
vs LRCX: 49.98
Lam Research had a gross margin of 49.83% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Lam Research was 0.90% per year.
Lam Research (NAS:LRCX) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Lam Research had a gross margin of 49.83% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Lam Research Gross Margin % Related Terms
Lam Research Gross Margin % Historical Data
* Premium members only.
The historical data trend for Lam Research's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LRCX vs AMAT, KLAC, TER: Gross Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Lam Research's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lam Research Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Lam Research's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lam Research's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Lam Research (LRCX) has a Gross Margin % of 49.83% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Lam Research and its competitors. This is near median its historical median of 45.79. Over the past decade, Lam Research's Gross Margin % has ranged from 44.49 to 49.98. According to the industry distribution chart, Lam Research ranks #173 out of 1009 companies in the Semiconductors industry, placing it in the top 17.1%.
Is Lam Research's Gross Margin % too high?
Lam Research's current Gross Margin % of 49.83% is near median its 10-year median of 45.79. Over the past 10 years, this metric has ranged from a low of 44.49 to a high of 49.98. The Semiconductors industry median Gross Margin % is 29.61. Lam Research's value of 49.83% is 68.3% above this industry median. Based on the distribution chart, Lam Research ranks #173 out of 1009 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Lam Research has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lam Research's Gross Margin % compare to AMAT and KLAC?
According to the Semiconductors industry distribution chart, Lam Research ranks #173 out of 1009 companies for Gross Margin %. This places Lam Research in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. Lam Research's value of 49.83% is 68.3% above this benchmark. Historically, Lam Research's own Gross Margin % has ranged from 44.49 to 49.98 over the past decade. While the company's 10-year median is 45.79 vs. the industry median of 29.61, Lam Research has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,009 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lam Research's current Gross Margin % of 49.83% is 68.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Lam Research and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lam Research's current Gross Margin % is 49.83%, which is near median its own 10-year median of 45.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lam Research stock overvalued right now?
Based on GuruFocus' analysis, Lam Research (LRCX) is currently considered Significantly Overvalued. The stock's GF Value™ is $131.10, compared to a current price of $433.33 — trading 230.5% above its estimated fair value. The current Gross Margin % is 49.83%, which is near median its 10-year median of 45.79 and 68.3% above the Semiconductors industry median of 29.61. Lam Research's overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Lam Research (LRCX), the current Gross Margin % is 49.83% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lam Research (LRCX) Overvalued in 2026?
Based on GuruFocus' analysis, Lam Research stock appears to be overvalued.
The current stock price of $433.33 is trading 230.5% above its estimated GF Value™ of $131.10.
GuruFocus considers Lam Research to be Significantly Overvalued.
Key valuation signals for LRCX:
Gross Margin %: 49.83% (near median its 10-year median of 45.79)
GF Value™: $131.10 vs. price of $433.33 (230.5% above fair value)
Industry Position: 68.3% above the Semiconductors median (#173 of 1009)
No single metric tells the full story. See the LRCX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lam Research is one of the largest semiconductor wafer fabrication equipment manufacturers in the world. It specializes in deposition and etch, which entail the buildup of layers on a semiconductor and the subsequent selective removal of patterns from each layer. Lam holds the top market share in etch and holds the clear second share in deposition. It is more exposed to memory chipmakers for DRAM and NAND chips. It counts as top customers the largest chipmakers in the world, including TSMC, Samsung, Intel, and Micron.
85GF Score
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