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Investing.com - Erste Group initiated coverage on Lam Research (NASDAQ:LRCX) with a Buy rating on Thursday. According to InvestingPro data, the stock is trading near its 52-week high, with 22 analysts recently revising their earnings expectations upward for the upcoming period.
The research firm highlighted that Lam Research is benefiting from the growing market for specialized semiconductor wafer manufacturing equipment, positioning the company for continued growth. The company’s strong market position is reflected in its impressive 23.7% revenue growth over the last twelve months.
For the current quarter, Lam Research expects sales of approximately $5.2 billion, representing a 25% year-over-year increase, with a projected gross margin of 50% and an operating margin of approximately 34%.
Erste Group noted that Lam Research maintains a higher return on equity and operating margin compared to its peer group, while its stock trades at a lower price-to-earnings ratio.
The firm expects Lam Research shares to make further gains, citing the company’s strong market position in semiconductor equipment manufacturing.
In other recent news, Lam Research reported its fourth-quarter 2025 earnings, which exceeded Wall Street expectations. The company posted a revenue of $5.17 billion, surpassing the forecast of $4.99 billion, and an earnings per share (EPS) of $1.33, beating the anticipated $1.20. Analysts have responded positively to these results, with Stifel raising its price target to $115, maintaining a Buy rating, and Needham also increasing its target to $115, citing strong demand from China. Mizuho raised its price target even further to $120, noting the company’s robust June quarter results and optimistic September quarter guidance of $5.20 billion in revenue. However, Summit Insights downgraded Lam Research from Buy to Hold, expressing concerns about potential moderation in wafer fabrication equipment spending in 2026. Despite this, Summit Insights remains optimistic about technology upgrades driving performance in the latter half of 2025. Lam Research’s performance has been notably strengthened by record results in its foundry segment, driven by increased activity in China. These developments highlight the company’s strong position in the semiconductor equipment market.
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