LRCX vs. MSFT
LRCX (Lam Research Corporation) and MSFT (Microsoft Corporation) are both stocks. Both are in the Technology sector — LRCX in Semiconductor Equipment & Materials, MSFT in Software - Infrastructure. Over the past 10 years, LRCX returned 46.35%/yr vs 24.64%/yr for MSFT. At a 0.41 correlation, their price movements are largely independent.
Performance
LRCX vs. MSFT - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, LRCX achieves a 89.76% return, which is significantly higher than MSFT's -14.48% return. Over the past 10 years, LRCX has outperformed MSFT with an annualized return of 46.35%, while MSFT has yielded a comparatively lower 24.64% annualized return.
LRCX
- 1D
- 6.98%
- 1M
- 10.34%
- YTD
- 89.76%
- 6M
- 99.61%
- 1Y
- 278.49%
- 3Y*
- 76.58%
- 5Y*
- 40.10%
- 10Y*
- 46.35%
MSFT
- 1D
- -1.18%
- 1M
- -0.60%
- YTD
- -14.48%
- 6M
- -15.77%
- 1Y
- -11.77%
- 3Y*
- 8.85%
- 5Y*
- 11.09%
- 10Y*
- 24.64%
LRCX vs. MSFT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LRCX Lam Research Corporation | 89.76% | 139.16% | -6.84% | 88.63% | -40.72% | 53.66% | 64.18% | 119.33% | -24.40% | 76.21% |
MSFT Microsoft Corporation | -14.48% | 15.58% | 12.93% | 58.19% | -28.02% | 52.48% | 42.53% | 57.56% | 20.80% | 40.73% |
Correlation
The correlation between LRCX and MSFT is 0.11, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.11 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.36 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.49 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.52 |
Correlation (All Time) Calculated using the full available price history since Mar 27, 1990 | 0.41 |
Over the past year, the correlation between LRCX and MSFT has dropped to 0.11 - well below their long-term average of 0.41, suggesting their price drivers have been diverging.
Fundamentals
LRCX:
$409.71B
MSFT:
$3.07T
LRCX:
$5.29
MSFT:
$16.79
LRCX:
61.36
MSFT:
24.52
LRCX:
4.64
MSFT:
1.72
LRCX:
18.98
MSFT:
9.65
LRCX:
38.71
MSFT:
7.40
LRCX:
$21.68B
MSFT:
$318.27B
LRCX:
$10.84B
MSFT:
$217.41B
LRCX:
$6.10B
MSFT:
$200.96B
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
LRCX vs. MSFT — Risk / Return Rank
LRCX
MSFT
LRCX vs. MSFT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Lam Research Corporation (LRCX) and Microsoft Corporation (MSFT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| LRCX | MSFT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +5.92 | ||
| Sortino ratioReturn per unit of downside risk | +5.02 | ||
| Omega ratioGain probability vs. loss probability | 1.60 | 0.94 | +0.67 |
| Calmar ratioReturn relative to maximum drawdown | 14.02 | -0.35 | +14.37 |
| Martin ratioReturn relative to average drawdown | 47.19 | -0.73 | +47.92 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| LRCX | MSFT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 5.46 | -0.47 | +5.92 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.87 | 0.42 | +0.45 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.04 | 0.91 | +0.13 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.43 | 0.74 | -0.31 |
Drawdowns
LRCX vs. MSFT - Drawdown Comparison
The maximum LRCX drawdown since its inception was -87.90%, which is greater than MSFT's maximum drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for LRCX and MSFT.
Loading charts...
Drawdown Indicators
| LRCX | MSFT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -87.90% | -69.38% | -18.52% |
Max Drawdown (1Y)Largest decline over 1 year | -20.01% | -33.91% | +13.90% |
Max Drawdown (3Y)Largest decline over 3 years | -47.10% | -33.91% | -13.19% |
Max Drawdown (5Y)Largest decline over 5 years | -56.39% | -37.15% | -19.24% |
Max Drawdown (10Y)Largest decline over 10 years | -56.39% | -37.15% | -19.24% |
Current DrawdownCurrent decline from peak | -5.60% | -23.56% | +17.96% |
Average DrawdownAverage peak-to-trough decline | -28.18% | -21.78% | -6.40% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.93% | 16.13% | -10.20% |
Volatility
LRCX vs. MSFT - Volatility Comparison
Lam Research Corporation (LRCX) has a higher volatility of 18.51% compared to Microsoft Corporation (MSFT) at 10.25%. This indicates that LRCX's price experiences larger fluctuations and is considered to be riskier than MSFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| LRCX | MSFT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 18.51% | 10.25% | +8.26% |
Volatility (6M)Calculated over the trailing 6-month period | 42.13% | 22.36% | +19.77% |
Volatility (1Y)Calculated over the trailing 1-year period | 51.52% | 25.31% | +26.21% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 46.25% | 26.64% | +19.61% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 44.76% | 27.06% | +17.70% |
Dividends
LRCX vs. MSFT - Dividend Comparison
LRCX's dividend yield for the trailing twelve months is around 0.31%, less than MSFT's 0.86% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LRCX Lam Research Corporation | 0.31% | 0.57% | 1.19% | 0.95% | 1.53% | 0.78% | 1.04% | 1.54% | 2.79% | 1.01% | 1.28% | 1.36% |
MSFT Microsoft Corporation | 0.86% | 0.70% | 0.73% | 0.74% | 1.06% | 0.68% | 0.94% | 1.20% | 1.69% | 1.86% | 2.37% | 2.33% |
Financials
LRCX vs. MSFT - Financials Comparison
This section allows you to compare key financial metrics between Lam Research Corporation and Microsoft Corporation. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
LRCX vs. MSFT - Profitability Comparison
LRCX - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Lam Research Corporation reported a gross profit of 2.91B and revenue of 5.84B. Therefore, the gross margin over that period was 49.8%.
MSFT - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Microsoft Corporation reported a gross profit of 56.06B and revenue of 82.89B. Therefore, the gross margin over that period was 67.6%.
LRCX - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Lam Research Corporation reported an operating income of 2.05B and revenue of 5.84B, resulting in an operating margin of 35.0%.
MSFT - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Microsoft Corporation reported an operating income of 38.40B and revenue of 82.89B, resulting in an operating margin of 46.3%.
LRCX - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Lam Research Corporation reported a net income of 1.83B and revenue of 5.84B, resulting in a net margin of 31.3%.
MSFT - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Microsoft Corporation reported a net income of 31.78B and revenue of 82.89B, resulting in a net margin of 38.3%.
Frequently Asked Questions
LRCX and MSFT have a correlation of 0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LRCX has higher volatility (18.51%) compared to MSFT (10.25%). In terms of maximum drawdown, LRCX dropped -87.90% vs MSFT's -69.38%.
LRCX currently has the higher Sharpe Ratio (5.46 vs -0.47), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
Find the right allocation for LRCX and MSFT
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer