Lam Research Shares Hit Record High on AI-Fueled Outlook

Overview

• Lam Research stock touched $275.99 on Tuesday, capping a 252% one-year run and lifting its value to about $343 billion.
• The rally followed April 22 results that topped forecasts, with adjusted earnings of $1.47 on $5.84 billion in revenue as AI orders boosted foundry, memory, and packaging gear.
• Brokerages raised targets into the $310 to $385 range, with Stifel, TD Cowen, Cantor, UBS, Oppenheimer, B. Riley, and Susquehanna citing broad strength and a strong near-term outlook.
• New U.S. rules limiting sales of chip equipment to China’s Hua Hong created uncertainty for future orders, since Lam supplies the tools used to build chips at such fabs.
• A pre-scheduled sale by SVP Neil Fernandes on May 1 totaled about $4.6 million, as shares now trade near 49 times earnings after roughly 27% sales growth over the past year.