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On Thursday, Cantor Fitzgerald maintained a positive outlook on Lam Research Corporation (NASDAQ:LRCX), reiterating an Overweight rating and a $90.00 price target. The firm’s analysis suggests that Lam Research, currently valued at $90.36 billion, is poised for significant growth, with expectations for the company’s earnings per share (EPS) to reach $4.10 in CY25, an increase from prior consensus estimates. InvestingPro analysis shows the company maintains a GOOD financial health score, with liquid assets exceeding short-term obligations and moderate debt levels.
Lam Research has provided a guidance for the June quarter that exceeds the market’s expectations, which has led analysts to anticipate that the company’s CY25 consensus estimates will likely surpass $4.00, compared to the previously previewed $4.00 and consensus of $3.81. This positive outlook is supported by Lam’s flexible manufacturing capabilities and strong operational efficiency, evidenced by its impressive 47.73% gross profit margin and 13.21% revenue growth in the last twelve months. The company’s robust financial position is expected to help mitigate the direct impact of tariffs, with any significant effects likely to be indirect, stemming from potential global GDP demand slowdowns.
Analysts at Cantor Fitzgerald have adjusted their model to reflect a revenue split of 52% in the first half and 48% in the second half of the year, with CY25 revenues now projected to reach $18.7 billion. This figure surpasses both the firm’s earlier estimate of $18.5 billion and the consensus of $18.1 billion. The growth is attributed to Lam’s strong market position in next-generation technology upgrades, which is expected to increase the company’s share of wallet in the NAND segment from 30% in CY24 to 40-45% in CY25.
Additionally, the firm projects that foundry revenues will grow by at least 30% in CY25, driven by spending from TSMC on Gate-All-Around (GAA) technology and advanced packaging, with Lam’s share of wallet in the foundry/logic segment anticipated to rise from 7.8% to 8.5%. DRAM revenues are also expected to grow by 16%, propelled by technology shrinks and advanced packaging. With a PEG ratio of 0.74, InvestingPro data suggests the stock is trading at an attractive valuation relative to its growth prospects.
Despite wafer fabrication equipment (WFE) market growth projections of over 5% in CY25, Cantor Fitzgerald is confident in a robust 24% growth for Lam. Gross margins (GMs) are forecasted to return to the low 48% range in the second half of CY25, with a trajectory towards mid to high 49% in CY26. Consequently, the firm has adjusted its CY25 EPS estimate to $4.10 and anticipates a continued upward trend into CY26, with a new EPS forecast of $4.85, up from the previous $4.65 and above the consensus of $4.28. For a comprehensive analysis of Lam Research’s growth prospects and valuation metrics, including exclusive ProTips and detailed financial health scores, visit InvestingPro, where you’ll find the full Pro Research Report covering 1,400+ top stocks.
In other recent news, Lam Research has reported financial results that exceeded expectations for the third fiscal quarter of 2025, with revenue and earnings per share (EPS) surpassing consensus estimates by 2% and 3%, respectively. The company also provided guidance for the fourth fiscal quarter, forecasting revenue and EPS to be 9% and 23% higher, respectively. Analysts from KeyBanc Capital Markets maintain an Overweight rating on the stock with a price target of $105, citing confidence in Lam Research’s future outlook. Meanwhile, JPMorgan has reduced its price target for the company to $95, despite acknowledging the strong performance and guidance for the June quarter.
TD Cowen also adjusted its price target for Lam Research, lowering it to $100 from $110, while maintaining a Buy rating. The analysts highlighted the company’s focus on expanding its market share in the Foundry segment and the anticipated recovery in the NAND Wafer Fabrication Equipment (WFE) market. Evercore ISI raised its price target to $99, maintaining an Outperform rating, and emphasized the potential underestimation of Lam Research’s technological advancements within the Semiconductor Capital Equipment segment.
Berenberg reiterated a Buy rating with a $90 price target, addressing concerns about the potential impacts of recent tariff changes on semiconductor equipment capital expenditures. Despite these concerns, Lam Research confirmed that its WFE capex estimates for 2025 remain unchanged. The company’s management expressed confidence in its growth prospects, supported by technology migrations and customer spending plans that remain steady.
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