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On Thursday, KeyBanc Capital Markets reaffirmed their optimistic stance on Lam Research Corporation (NASDAQ:LRCX), maintaining an Overweight stock rating and a price target of $105.00. According to InvestingPro data, the stock is currently trading near its Fair Value, with analysts’ targets ranging from $70 to $125. Following the release of the company’s financial results for the third fiscal quarter of 2025, which exceeded consensus estimates, the firm’s analysts highlighted Lam Research’s record margin quarter and its confident outlook.
Lam Research reported revenue and earnings per share (EPS) for the third fiscal quarter that were 2% and 3% above consensus, respectively. Moreover, the company’s guidance for the fourth fiscal quarter’s revenue and EPS are forecasted to be 9% and 23% higher, respectively, indicating another potential record margin quarter.
The analysts at KeyBanc noted Lam Research’s confident tone during the earnings call, pointing out that the company has observed no changes to customer plans. Lam Research anticipates approximately $100 billion in worldwide foundry equipment (WFE) spending this year and plans to outperform the market.
Lam Research’s strategy for outgrowth is expected to be driven by serviceable available market (SAM) growth that will surpass WFE, market share gains from new products, and customer support business group (CSBG) growth that exceeds installed base growth. KeyBanc’s analysts believe that Lam Research is well-positioned to benefit from leading-edge products such as Gate All Around, Backside Power Delivery, and Advanced Packaging (NYSE:PKG), which are likely to drive intensity in Deposition and Etch segments where the company holds a leading market position.
Additionally, an equipment upgrade cycle driven by higher-layer-count NAND and DRAM, as well as logic tool repurposing, is expected to benefit Lam Research. The analysts also mentioned that this could positively impact subsystem companies like Advanced Energy Industries, Inc. (NASDAQ:AEIS) and MKS Instruments , Inc. (NASDAQ:MKSI).
In conclusion, KeyBanc’s analysts suggest that investors should find reassurance in Lam Research’s recent financial results and future outlook, as they reiterated their Overweight rating and $105 price target on the company’s stock.
In other recent news, Lam Research reported its first-quarter 2025 earnings, surpassing both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $1.04, exceeding the forecasted $1.00, and generated $4.72 billion in revenue, surpassing the expected $4.63 billion. Following these results, Lam Research’s stock experienced a rise. The company also provided guidance for the second quarter of 2025, projecting revenue of $5 billion ± $300 million. JPMorgan analysts adjusted their outlook on Lam Research, reducing the price target to $95 while maintaining an Overweight rating, due to potential medium-term effects from tariffs and trade dynamics. Berenberg reiterated its Buy rating with a steadfast $90 price target, despite concerns about potential impacts of recent tariff changes. Evercore ISI raised its price target to $99, maintaining an Outperform rating, citing Lam Research’s recent financial performance and potential underestimation by investors of technological advancements within the Semiconductor Capital Equipment (SCE) segment. These developments highlight the dynamic nature of Lam Research’s market position and future prospects within the semiconductor industry.
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