5 big analyst AI moves: Apple lifted to Buy, AI chip bets reassessed
Investing.com - Bernstein SocGen Group raised its price target on Lam Research (NASDAQ:LRCX) to $170.00 from $105.00 on Thursday, while maintaining an Outperform rating on the semiconductor equipment maker. According to InvestingPro data, the stock has already delivered an impressive 113% return over the past six months, with current trading metrics showing high valuation multiples across various metrics.
The price target adjustment represents a significant 62% increase, reflecting Bernstein’s growing confidence in Lam Research’s market position and growth prospects. The firm cited favorable positioning against key industry inflections including GAA, packaging, HBM, and NAND upgrades. This optimism is supported by the company’s strong financial performance, with revenue growth of 23.7% and a healthy gross profit margin of 48.7% in the last twelve months. InvestingPro analysis reveals 18 additional key insights about Lam Research’s financial health and market position.
Bernstein noted that Lam Research is showing "solid upside in the near term" with growth expected to sustain. The company has also de-risked its forward China profile, addressing a concern that had previously weighed on investor sentiment. The company’s financial stability is evident in its strong balance sheet, with a current ratio of 2.21 and moderate debt levels, as highlighted in the comprehensive Pro Research Report available on InvestingPro.
The research firm indicated that Lam Research appears to be managing expectations for 2026, suggesting a second-half weighted calendar year that could leave room for estimate revisions as the year progresses. This follows a similar pattern to the company’s approach to 2025 forecasts.
Semiconductor capital equipment stocks have recently gained momentum as investors grow more positive about wafer fab equipment growth for next year, according to Bernstein’s analysis. The firm highlighted Lam Research’s "solid internal execution" with longer-term targets that still provide potential upside.
In other recent news, Lam Research has reported quarterly earnings that exceeded Wall Street expectations, with guidance also surpassing predictions. The semiconductor equipment maker’s December quarter guidance stands at $5.20 billion, outpacing the $4.8 billion consensus expectation. Following these results, several financial firms have adjusted their price targets for Lam Research. Needham raised its price target to $160, citing strong sales in China, while UBS increased its target to $165, highlighting optimistic projections for calendar year 2026. Stifel also raised its price target to $160, noting that Lam’s fiscal first-quarter results modestly exceeded expectations. Mizuho set a new target of $170, reflecting the slightly better-than-expected September quarter results. Despite these positive developments, Goldman Sachs maintains a $160 price target, suggesting the stock may remain stable in the near term.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.