Lam Research Beats Q3 and Raises Outlook as Analysts Lift Targets

Overview

• Lam posted fiscal Q3 earnings of $1.47 per share versus the $1.36 consensus and revenue of $5.84 billion versus $5.75 billion, up 24% from a year ago.
• The company guided Q4 above Wall Street by about 9% on sales and 14% on profit, and gross margin reached roughly 50.5% after a one-point improvement.
• Bank of America raised its price target to $330 and lifted EPS estimates to $9.21 for 2026 and $10.31 for 2027.
• Stifel and Lynx Equity recently increased their targets to $300 and $325, respectively, citing better visibility into 2028 growth.
• Unconfirmed reports say Elon Musk’s Terafab joint venture has contacted Lam and Applied Materials about potential supplies as it aims for 2-nanometer chip production by 2029.