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Investing.com - Goldman Sachs has reiterated its Buy rating and $160.00 price target on Lam Research (NASDAQ:LRCX), a prominent player in the Semiconductors & Semiconductor Equipment industry with a market capitalization of $178 billion. According to InvestingPro data, the company maintains a "GREAT" financial health score, though current analysis suggests the stock is trading above its Fair Value.
The semiconductor equipment manufacturer reported quarterly results and guidance that exceeded Wall Street expectations, with impressive revenue growth of 23.7% over the last twelve months. Goldman notes that investor expectations had already risen ahead of the announcement due to positive AI-related datacenter news, strong reports from peers like ASML, and recent stock price gains, reflected in the stock’s remarkable 97% year-to-date return.
Goldman expressed encouragement regarding management’s positive outlook for wafer fabrication equipment (WFE) in 2026, with growth expected across all segments of the business, though cautioned that stock performance might be limited by muted expectations for the Chinese market and gross margin challenges.
The investment bank maintains its Buy rating based on Lam Research’s positioning to outperform competitors due to its high exposure to deposition and etch processes, where intensity is expected to increase, along with its substantial share in NAND equipment upgrades.
Goldman further noted that as NAND suppliers focus on upgrading existing equipment, Lam Research will benefit disproportionately when that market recovers, enhanced by the company’s leadership position in High Bandwidth Memory (HBM) technology.
In other recent news, Lam Research Corp 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 outperformed predictions, reaching $5.32 billion compared to the anticipated $5.22 billion. Despite these positive financial results, Lam Research’s stock experienced a decline in aftermarket trading. Analysts have noted mixed guidance from the company and potential market challenges as contributing factors to the stock’s performance. There were no significant mergers or acquisitions announced in the recent updates. Additionally, no major upgrades or downgrades from analyst firms were reported at this time. These developments are part of the latest updates surrounding Lam Research Corp.
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