Stifel raises Lam Research stock price target to $110 ahead of earnings

Investing.com - Stifel has raised its price target on Lam Research (NASDAQ:LRCX) to $110.00 from $92.00 while maintaining a Buy rating ahead of the company’s fiscal fourth-quarter earnings report. The semiconductor equipment maker, currently trading near its 52-week high with a market capitalization of $126.4 billion, has shown impressive momentum with a 32% return over the past six months. According to InvestingPro analysis, the company appears to be trading above its Fair Value.

The semiconductor equipment maker is scheduled to release its June-quarter results on Wednesday after market close, with Stifel expecting the company to modestly exceed its estimates. The company has maintained strong financial health, with InvestingPro data showing a robust 48% gross profit margin and impressive revenue growth of 20.3% over the last twelve months.

Stifel projects Lam’s revenue growth to strongly outpace the market in the first half of the calendar year, driven by expansion in advanced foundry and NAND technology upgrades.

For the second half of 2025, Stifel models revenue below first-half levels, aligning with consensus and Lam’s previous guidance, but expects the September quarter to be lower than the December quarter due to customer shipment timing in foundry, DRAM, and China.

Looking ahead to 2026, Stifel anticipates investments in AI infrastructure will bolster leading-edge Foundry/DRAM expansion and vertical scaling in NAND, benefiting Lam Research despite ongoing trade and tariff policy risks.

In other recent news, Lam Research has made significant announcements impacting investors and stakeholders. The company declared a quarterly dividend of $0.23 per share, payable on July 9, 2025, to shareholders of record as of June 18, 2025. This decision reflects Lam Research’s ongoing commitment to shareholder returns. Additionally, the company has revised its bylaws to allow shareholders with a minimum 20% stake held for at least one year to call special meetings. This change aims to ensure shareholders have adequate information and avoid redundant meetings.

Furthermore, Goldman Sachs has initiated coverage on Lam Research with a Buy rating, highlighting the company’s substantial exposure to deposition and etch processes in semiconductor manufacturing. Meanwhile, U.S. chip equipment makers, including Lam Research, faced pressure following ASML (AS:ASML)’s warning about potential growth uncertainties due to U.S. tariffs. These developments collectively provide insight into Lam Research’s current strategic direction and market positioning.

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