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Investing.com - Mizuho (NYSE:MFG) raised its price target on Lam Research (NASDAQ:LRCX) to $120.00 from $115.00 on Thursday, while maintaining an Outperform rating on the semiconductor equipment maker’s stock. The stock is currently trading near its 52-week high, with a market capitalization of $117.5 billion, according to InvestingPro data.
The price target increase follows Lam Research’s June quarter results, which exceeded consensus expectations, and its September quarter guidance of $5.20 billion in revenue, surpassing analysts’ estimates of $4.7 billion. The company’s strong performance is reflected in its impressive 20.3% revenue growth and 48% gross profit margin over the last twelve months.
Mizuho noted that Lam Research raised its 2025 wafer fabrication equipment (WFE) forecast to $105 billion from $100 billion previously, representing a 10% year-over-year increase, with China spending performing better than anticipated.
The company reported mixed segment performance with foundry revenues up 19% quarter-over-quarter, while logic declined 15%, DRAM fell 33%, and NAND flash memory increased 48% compared to the previous quarter.
Despite the positive outlook, Mizuho acknowledged some potential weakness in the December quarter, with Lam Research indicating the second half of 2025 could be flat compared to the first half, though the firm remains optimistic about Lam’s positioning for artificial intelligence and memory trends extending into 2026. For deeper insights into Lam Research’s valuation and growth prospects, including 15+ additional ProTips and comprehensive financial analysis, visit InvestingPro.
In other recent news, Lam Research reported its fourth-quarter 2025 earnings, surpassing Wall Street expectations with both revenue and earnings per share. The company achieved a revenue of $5.17 billion, exceeding the forecasted $4.99 billion, and an earnings per share of $1.33, which was higher than the anticipated $1.20. Additionally, Lam Research increased its 2025 outlook for wafer fabrication equipment to $105 billion, up from the previous $100 billion, driven by rising demand from China. Following these results, Needham raised its price target for Lam Research to $115, maintaining a Buy rating. Meanwhile, Summit Insights downgraded the stock from Buy to Hold, due to expectations of moderating spending in 2026. Despite the downgrade, Summit Insights remains optimistic about technology upgrades, particularly in areas like Gate-All-Around and dry EUV photo resist, which could benefit Lam Research in the latter half of 2025. These developments reflect the company’s current positioning in the semiconductor equipment market.
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