Atif Malik, an analyst from Citi, maintained the Buy rating on Lam Research. The associated price target was raised to $175.00.
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Atif Malik has given his Buy rating due to a combination of factors that highlight Lam Research’s strong financial performance and growth prospects. The company has reported better-than-expected quarterly results, often referred to as ‘beat-and-raise,’ which indicates a robust financial health and an optimistic future outlook. Lam Research has also raised its 2025 wafer fabrication equipment (WFE) forecast to over $105 billion, driven by increased demand for DRAM and high-bandwidth memory (HBM), and anticipates solid growth across all end markets in 2026.
Furthermore, the company’s strategic positioning in the artificial intelligence (AI) sector is promising, with expectations of significant AI-related WFE spending. This is supported by Citi’s assumptions of hyperscaler capital expenditures, which suggest a 30% year-over-year increase in AI WFE spending. Additionally, potential upside in sales due to memory facility constraints and the company’s ability to adapt to demand further strengthen the Buy rating. Malik has also adjusted the earnings per share estimates for 2025 and 2026 upwards and increased the target price, reflecting the anticipated growth in AI sales and a re-rating of the group’s valuation multiple.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $170.00 price target.