Lam Research stock plunges after Evercore warns of near-term weakness

Shares of semiconductor-equipment company Lam Research Corp. LRCX, -5.74%are down 7.4% in Thursday morning trading after Evercore ISI analyst C.J. Muse wrote of "risks" to Lam's second- and third-quarter shipments, based on his latest round of channel checks. "Good news - the pushouts speak to greater focus on profitability by memory makers, so we view this pause as only temporary," wrote Muse, who rates the stock at outperform with a $300 price target.

"Bad news - this will likely weigh on sentiment for Lam until we get greater clarity on the magnitude of the decline (likely discussed by suppliers at SemiconWest and by Lam on its earnings call in July)." Muse sees 3D NAND and DRAM efforts at Samsung as the "curprit." Shares of related companies, including Ichor Holdings Ltd. ICHR, -7.56%are also down sharply. Lam shares have gained 14% over the past 12 months, while the S&P 500 SPX, -0.01%has risen 14%.