Lam Research Corp. (LRCX) stock faces challenges in 2026 after a strong 2025 performance. Buoyed by AI-driven demand and record revenue, shares surged 145%. However, stretched valuations and export control concerns cloud the outlook. Technical indicators suggest overbought conditions, prompting caution. An institutional trader hedged against downside risks with a put roll.

Options flow on LRCX highlights caution as a large put roll was executed on March 2026 contracts. The spread, involving a buy-to-open $170 put and sale of $160 put, indicates downside protection. While the exact motive is unclear, the move suggests a prudent approach to managing risk in an uncertain market.

Read more at Barchart: LRCX Outperformed in 2025, but Valuation and Options Activity Flag 2026 Risks