Goldman Sachs initiates Lam Research stock with Buy rating on NAND exposure

Published 10/07/2025, 11:22
Goldman Sachs initiates Lam Research stock with Buy rating on NAND exposure

Investing.com - Goldman Sachs initiated coverage on Lam Research (NASDAQ:LRCX) with a Buy rating and a price target of $115.00. The semiconductor equipment maker, which has delivered a 34% return over the past six months, currently trades near its 52-week high of $113.

The investment bank cited Lam Research’s high relative exposure to deposition and etch processes, areas where intensity is expected to increase in semiconductor manufacturing.

Goldman Sachs noted that Lam Research holds a robust share of NAND equipment upgrades, positioning the company to benefit as NAND suppliers focus on upgrading existing equipment rather than adding new capacity.

The firm expects Lam Research to "outperform peers" as the NAND market recovers from a low base, with the company poised to benefit "disproportionately" from this recovery.

Goldman Sachs also highlighted Lam Research’s market leadership in High Bandwidth (NASDAQ:BAND) Memory (HBM) as an additional factor that will augment the company’s performance.

In other recent news, Lam Research Corporation announced a quarterly dividend of $0.23 per share, payable on July 9, 2025, reflecting its ongoing commitment to shareholder returns. The company’s Board of Directors emphasized that future dividends would be under continuous review, considering potential risks and uncertainties in the semiconductor industry. Additionally, Lam Research has revised its bylaws to allow shareholders with at least a 20% stake to call special meetings, a move aimed at enhancing corporate governance. This bylaw amendment is part of the company’s efforts to provide timely and accurate information to shareholders.

On the analyst front, Stifel maintained a Buy rating on Lam Research, highlighting the company’s stronger-than-expected third-quarter performance and projecting significant revenue growth for 2025. Cantor Fitzgerald also reiterated an Overweight rating, raising its earnings per share estimates for 2025 and noting Lam’s strong market position in next-generation technology upgrades. Meanwhile, TD Cowen adjusted its price target for Lam Research to $100, down from $110, but maintained a Buy rating, citing growth catalysts such as NAND Wafer Fabrication Equipment recovery.

These developments come as Lam Research continues to focus on expanding its market share in the Foundry segment, driven by technologies like Gate-All-Around and advanced packaging. The company’s strategic initiatives and positive analyst outlooks suggest a promising trajectory for Lam Research in the semiconductor industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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