Lam Research Price Target Raised as Stock (LRCX) Moves Lower

Lam Research stock (NASDAQ: LRCX) fell 2.61% yesterday following earnings, and has begun this morning's pre-market in similar form, down 1.1%. Despite the near term pressure on price, the stock has seen some positive revisions to its price target from multiple analysts.

Stifel increased its price target on Lam Research to $160 from $135, reaffirming a “Buy” rating. This decision followed Lam Research's fiscal first-quarter results, which modestly surpassed both Stifel's and consensus estimates. The revenue outlook for the fiscal second quarter also reflects a more moderate decline than initially expected, signaling underlying strength in the company's business. Stifel's analysis points to growing confidence in Lam Research's product and market momentum, fueled by the burgeoning AI sector's demand for wafer fabrication equipment.

Echoing this sentiment, B. Riley also raised its price target on Lam Research, moving from $160 to $175 while maintaining a “Buy” rating. This adjustment underscores the belief in Lam Research's continued growth prospects, supported by the robust demand for semiconductor equipment.

Lam Research's financial performance in the fiscal first quarter ending September 28, 2025, demonstrated its ability to exceed market expectations. The company reported revenue of $5.32 billion, surpassing the anticipated $5.23 billion. Adjusted profit reached $1.26 per share, exceeding the expected $1.22. Looking ahead, Lam Research anticipates adjusted earnings of $1.15 per share (±10 cents) for the upcoming quarter ending December 28, 2025, exceeding the analyst estimate of $1.04.

The company outlined guidance for Q2 revenue of $5.20 billion (±$300 million), exceeding Wall Street's estimate of $4.81 billion. This optimistic forecast is largely attributed to the increased demand for chipmaking tools used in manufacturing semiconductors for AI applications.

Despite these positive indicators and analyst upgrades, the current dip in Lam Research's stock price suggests that broader market factors may be at play. Concerns about overall economic growth, inflation, or geopolitical uncertainties could be weighing on investor sentiment, overshadowing the specific positive news surrounding Lam Research. The semiconductor industry, while benefiting from long-term growth drivers like AI, remains cyclical and susceptible to macroeconomic headwinds.