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Investing.com - Needham raised its price target on Lam Research (NASDAQ:LRCX) to $160.00 from $150.00 on Thursday, maintaining a Buy rating following the semiconductor equipment maker’s quarterly results. According to InvestingPro data, Lam Research, currently valued at $178 billion, has demonstrated impressive momentum with a 96% return over the past year.
The semiconductor equipment manufacturer reported a slight revenue beat for the third quarter of 2025, while providing fourth-quarter guidance that exceeded Wall Street expectations.
China sales were a significant driver of Lam’s performance, increasing 25% quarter-over-quarter and accounting for 43% of total revenue in the third quarter, which boosted foundry/logic revenue and gross margin strength.
Looking ahead to the fourth quarter, Lam expects China revenue to decline partly due to the new U.S. government "50% rule," which is projected to impact sales by $200 million in the fourth quarter and $600 million in calendar year 2026.
Despite the anticipated China slowdown in 2026, Needham remains optimistic about Lam’s prospects, citing management’s outlook for strong performance in other regions due to robust wafer fabrication equipment demand across all segments, including continued NAND upgrades.
In other recent news, Lam Research reported its fiscal first-quarter earnings for 2026, surpassing Wall Street expectations with a diluted earnings per share of $1.26, compared to the forecast of $1.22. The company’s revenue also exceeded predictions, reaching $5.32 billion against an anticipated $5.22 billion. Despite these positive results, analysts have varied expectations for the stock’s future. UBS raised its price target for Lam Research to $165 from $155, citing stronger-than-expected guidance and projecting earnings per share of approximately $5.25-5.50 for 2026. Stifel also increased its price target to $160 from $135, following the company’s fiscal first-quarter results, which exceeded both Stifel’s and consensus expectations. Mizuho raised its price target to $170 from $162, noting the company’s September quarter results and December quarter guidance of $5.20 billion, which surpassed the $4.8 billion consensus expectation. Meanwhile, Goldman Sachs maintained its Buy rating and $160 price target, acknowledging strong earnings but suggesting the stock may remain range-bound. These developments reflect the mixed reactions and varied expectations among analysts regarding Lam Research’s financial performance and future prospects.
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