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 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 as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 15 Stocks That Will Benefit From AI and 10 Must-Buy Canadian Stocks to Invest in.

Disclosure: None.