Lam Research (LRCX) stock rose as Wall Street continues to raise the bar

TLDR

• Lam Research (LRCX) rose 7.5%, opening at $365.13 after Mizuho raised its price target from $380 to $400 with an outperform rating.
• Several analysts have raised targets recently, with Susquehanna the most bullish at $475 and Stifel Nikolaus at $500.
• LRCX now has 28 Buy ratings and 6 Hold ratings, with the MarketBeat consensus of Moderate Buy.
• Last quarter, LRCX beat EPS estimates ($1.47 vs. $1.36 expected) and revenue reached $5.84 billion, up 23.8% year over year.
• Mizuho raised its 2027 global wafer manufacturing equipment (WFE) estimate to $192 billion, up 25% year-on-year, citing AI-driven demand.

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Lam Research (LRCX) opened Thursday at $365.13, up 7.5% from its previous close of $333.15, after Mizuho raised its price target to $400 from $380 and maintained an outperform rating. The stock last traded around $364.95.

Lam Research Corporation, LRCX

The move came as Mizuho cited growing demand for artificial intelligence as a driver of spending on chip manufacturing equipment over the next several years. The company expects global WFE volume to reach $192 billion in 2027, an increase of 25% year-on-year, after an estimated 23% rise in 2026.

Mizuho also provided estimates for 2028 and 2029, forecasting WFE to be worth $221 billion and $214 billion, respectively. The company expects investment in artificial intelligence, memory and foundry to fuel demand for the equipment for several years.

Memory expenditure He is an essential part of that story. Mizuho noted HBM’s capex will accelerate in 2027-2028 as manufacturers build capacity before starting production in 2028. The growing gap between supply and demand in global memory is also seen as a tailwind.

Analysts’ price targets continue to rise

Mizuho was not alone in achieving her goal. Rothschild & Co Redburn raised its target from $305 to $420 with a buy rating in mid-June. Citigroup also repeated the buy and raised its target from $315 to $450 around the same time.

Susquehanna set a $475 target at the end of June, reiterating a positive rating. Stifel Nicolaus went even further, setting a goal of $500 on June 29. HSBC was more cautious, moving its credit rating target from $221 to $247 in April.

Cantor Fitzgerald was among the most bullish, raising his target to $500 and citing market share gains for LRCX among semiconductor capital equipment makers. The company also cited AI-driven demand and advanced packaging as drivers of growth.

Taking all that into account, LRCX now has 28 Buy ratings and 6 Hold ratings, giving it a MarketBeat consensus of Moderate Buy. The average price target across analysts sits at $348.39.

Earnings beat the bullish case

LRCX The latest quarterly results gave analysts something to work with. The company reported EPS of $1.47, beating the consensus of $1.36 by $0.11. Revenue was $5.84 billion, beating estimates of $5.70 billion.

The revenue number was up 23.8% from the same quarter last year, when EPS was $1.04. Return on equity reached 66.21%, with a net margin of 30.94%.

For Q4 2026, LRCX has guided EPS of $1.50 to $1.80. Sell-side analysts currently expect full-year EPS to be $5.68.

On the dividend side, LRCX paid a quarterly dividend of $0.26 per share on July 8th. The annual dividend is $1.04, which represents a yield of about 0.3%.

The stock has a market cap of $447.92 billion, a P/E ratio of 67.55 and a 200-day moving average of $261.73.