Lam Research Soars as Analysts Raise Targets on AI-Driven Chip Demand

Higher wafer-capex forecasts and strong quarterly results have pushed price targets up and expanded the market case for the company’s etch and deposition tools.

Overview

Analysts from firms including Mizuho, Evercore ISI and UBS have lifted price targets and ratings after Lam’s upbeat quarterly results and management guidance.
Mizuho’s bigger wafer-fab equipment forecasts for 2026–2027 boosted the addressable market for suppliers of etch and deposition tools, which power advanced logic, memory and packaging.
The stock has climbed sharply on the news, reaching an intraday record high on June 11 and rising roughly 279% over the past year according to recent market reports.
Bullish cases center on AI-driven chip complexity and heavy capex from TSMC, Samsung and Micron, while counterpoints include a stretched valuation (trailing P/E north of 60) and China-related export controls.
If higher spending keeps pace, Lam could see multi-year revenue and EPS upside, but investors should watch the timing of a potential peak cycle and any further U.S. export restrictions to China.