Lam Research stock price target raised to $115 from $110 at Stifel

Investing.com - Stifel raised its price target on Lam Research (NASDAQ:LRCX) to $115.00 from $110.00 on Thursday, maintaining a Buy rating on the semiconductor equipment maker. The company, with a market capitalization of $120.48 billion, has shown remarkable strength, trading near its 52-week high of $102.59. According to InvestingPro analysis, the stock currently appears slightly overvalued relative to its Fair Value.

The price target increase follows Lam Research’s quarterly results, which exceeded both Stifel’s and consensus estimates for revenue and earnings. The company’s performance was strengthened by record foundry segment results, primarily driven by China, alongside increased NAND upgrade activity. InvestingPro data reveals impressive financial metrics, including a robust revenue growth of 20.33% and a return on equity of 53%.

Lam Research guided its fiscal first quarter (September) revenue slightly higher quarter-over-quarter, outperforming Stifel and consensus estimates that had projected a high-single digit decline. The improved outlook for the second half of the calendar year is supported by higher China wafer fabrication equipment (WFE) spending.

Stifel noted that even excluding China, Lam’s revenue is on track to grow approximately 30% this year, with systems revenue growing at an even higher rate. The firm views this as confirmation of Lam’s ongoing ability to increase its serviceable available market and share in advanced logic and memory manufacturing.

The new $115 price target represents a multiple of 22 times Stifel’s calendar year 2026 earnings per share estimate, which aligns with the S&P 500’s multiple.

In other recent news, Lam Research reported impressive fourth-quarter 2025 earnings, with revenue reaching $5.17 billion, surpassing the anticipated $4.99 billion. The company’s earnings per share (EPS) also exceeded expectations, coming in at $1.33 compared to the forecasted $1.20. In light of these strong results, Mizuho (NYSE:MFG) has raised its price target for Lam Research to $120, maintaining an Outperform rating, while Needham increased its target to $115 with a Buy rating. Both firms highlighted the positive impact of strong demand from China on Lam Research’s performance.

Additionally, Lam Research has revised its outlook for wafer fabrication equipment (WFE) in 2025, increasing it from $100 billion to $105 billion. However, Summit Insights downgraded the stock from Buy to Hold, citing concerns about moderating WFE spending in 2026. Despite this, Summit Insights remains optimistic about technological advancements, such as Gate-All-Around and dry EUV photo resist, driving growth in the latter half of 2025. These developments indicate a dynamic environment for Lam Research as it navigates industry trends and market demands.

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