Lam Research stock price target raised to $170 from $162 at Mizuho

Investing.com - Mizuho raised its price target on Lam Research (NASDAQ:LRCX) to $170.00 from $162.00 on Thursday, maintaining an Outperform rating on the prominent semiconductor equipment maker. According to InvestingPro data, Lam Research has demonstrated strong momentum with a remarkable 113% return over the past six months, though current analysis suggests the stock is trading above its Fair Value.

The price target increase follows Lam Research’s September quarter results, which came in slightly above consensus, and its December quarter guidance of $5.20 billion, exceeding the $4.8 billion consensus expectation. The company’s robust performance is reflected in its impressive 23.7% revenue growth over the last twelve months, with total revenue reaching $18.4 billion.

Mizuho noted that Lam Research projects 2025 wafer fabrication equipment (WFE) spending to exceed $105 billion, with further year-over-year growth expected in 2026. The firm also highlighted that every $100 billion of incremental AI data center spending creates approximately $8 billion in WFE opportunity, with about 50% allocated to memory spending.

The research firm pointed to Lam Research’s expectation of approximately $40 billion in NAND conversion tailwinds to WFE over several years, and the company’s projection that first-half 2026 revenues will be flat to up compared to second-half 2025.

Foundry customers currently represent about 60% of Lam Research’s revenue, with China domestic tailwinds on mature nodes, while DRAM revenue increased 18% quarter-over-quarter driven by High Bandwidth Memory (HBM) spending. For deeper insights into Lam Research’s financial health and growth prospects, InvestingPro subscribers can access exclusive analysis, including 20 additional ProTips and comprehensive valuation metrics in our detailed Pro Research Report.

In other recent news, Lam Research reported its first-quarter fiscal 2026 earnings, exceeding Wall Street expectations. The company achieved a diluted earnings per share (EPS) of $1.26, surpassing the forecast of $1.22. Revenue also beat predictions, reaching $5.32 billion compared to the anticipated $5.22 billion. Despite these strong results, Goldman Sachs reiterated its Buy rating on Lam Research, maintaining a price target of $160.00. This decision comes even as the stock is expected to remain range-bound, influenced by positive AI-related datacenter news and strong performance from industry peers. Goldman Sachs noted that investor expectations had already risen prior to the earnings announcement. The company’s guidance was mixed, leading to a cautious market reaction. These developments highlight the ongoing challenges and opportunities facing Lam Research in the current market landscape.

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