Lam Research Rallies to Record High as Brokers Lift Price Targets
Higher analyst models for multiyear wafer‑fab spending tied to AI memory and advanced packaging pushed price targets up, prompting valuation scrutiny.
Overview
- The stock jumped to an all‑time high near $410 on Monday after a cluster of analyst upgrades, giving Lam Research a market value of roughly $512 billion.
- Bank of America led the moves on June 23 by raising its price target to $480 and revising its semiconductor model to a $2.7 trillion industry by 2030.
- Several brokerages including Citi, Barclays, Cantor Fitzgerald and Mizuho materially raised WFE (wafer‑fab equipment) forecasts, with Citi projecting a bull case that tops $250 billion in WFE by 2028.
- Analysts and company management say the upgrades rest on rising AI demand for high‑bandwidth memory and 3D advanced packaging, with Lam forecasting advanced‑packaging revenue to grow more than 50% in 2026.
- Market watchers warn of downside risks from stretched valuations flagged by third‑party services, cleanroom and capacity limits that could slow shipments, and U.S. export controls on China that could shift timing and end markets.