Key Takeaways Lam Research (LRCX) shares jumped 7.5%, starting the session at $365.13 following Mizuho’s decision to increase its price target from $380 to $400 while maintaining an Outperfor
Shares of Lam Research (LRCX) began Thursday’s trading session at $365.13, marking a significant 7.5% increase from Wednesday’s closing price of $333.15. The surge followed Mizuho’s announcement that it was elevating its price objective to $400 from the previous $380 while reaffirming its Outperform designation. By midday, the stock was changing hands near $364.95.
Lam Research Corporation, LRCX
The upgrade reflects Mizuho’s increasingly optimistic outlook on artificial intelligence-related demand spurring semiconductor manufacturing equipment purchases throughout the coming years. The investment firm anticipates worldwide WFE spending will hit $192 billion by 2027, reflecting a robust 25% year-over-year expansion, building on an anticipated 23% increase in 2026.
Mizuho has also unveiled forecasts extending through 2028 and 2029, predicting WFE markets of $221 billion and $214 billion respectively. According to the firm, sustained investment in AI infrastructure, memory production, and foundry operations will drive equipment demand across multiple years.
Memory spending represents a critical component of this growth narrative. Mizuho highlighted accelerating HBM capital expenditure extending into 2027-28 as chip makers expand capacity in preparation for 2028 production launches. An expanding mismatch between worldwide memory supply and demand is expected to provide additional momentum.
Mizuho’s upgrade wasn’t an isolated event. Rothschild & Co Redburn increased its price objective from $305 to $420 with a Buy recommendation in mid-June. Citigroup similarly maintained its Buy stance while boosting its target from $315 to $450 during the same timeframe.
Susquehanna established a $475 price objective at June’s conclusion, maintaining its Positive outlook. Stifel Nicolaus adopted an even more aggressive stance, setting a $500 target on June 29th. HSBC took a relatively conservative approach, adjusting its Hold-rated objective from $221 to $247 back in April.
Cantor Fitzgerald has positioned itself among the most optimistic voices, elevating its target to $500 while highlighting LRCX’s expanding market share within the semiconductor capital equipment sector. The firm emphasized AI-driven expansion and advanced packaging technologies as significant growth catalysts.
Currently, LRCX holds 28 Buy recommendations alongside 6 Hold ratings, resulting in a MarketBeat consensus classification of Moderate Buy. The mean price objective among Wall Street analysts stands at $348.39.
LRCX’s latest quarterly earnings provided substantial validation for analyst optimism. The semiconductor equipment manufacturer delivered earnings per share of $1.47, surpassing the Street consensus of $1.36 by $0.11. Revenue totaled $5.84 billion, exceeding analyst projections of $5.70 billion.
This revenue performance represented a 23.8% increase compared to the equivalent quarter in the previous year, when earnings per share stood at $1.04. The company achieved a return on equity of 66.21% alongside a net margin of 30.94%.
Looking ahead to Q4 2026, LRCX has issued guidance calling for earnings per share between $1.50 and $1.80. Wall Street analysts are currently modeling full-year EPS of $5.68.
Regarding shareholder distributions, LRCX distributed a quarterly dividend of $0.26 per share on July 8th. The annualized dividend totals $1.04, translating to an approximate yield of 0.3%.
The company maintains a market capitalization of $447.92 billion, trades at a price-to-earnings ratio of 67.55, and has a 200-day moving average of $261.73.
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