Morgan Stanley Hikes Lam Research (LRCX) PT to $158, Keeps Equal Weight on Increased 2027 Wafer Fab Equipment Forecast

Lam Research Corporation (NASDAQ:LRCX) is one of the most profitable tech stocks to buy. On December 2, Morgan Stanley analyst Shane Brett raised the firm’s price target on Lam Research to $158 from $137 with an Equal Weight rating on the shares. This decision comes as the firm has largely maintained its 2026 Wafer Fab Equipment/WFE forecast at $129 billion, which represents 11% year-over-year growth. Concurrently, it increased its 2027 WFE forecast to $145 billion, representing a 13% increase.

In FQ1 2026, Lam Research reported revenues of $5.32 billion, which represented a 28% increase from the $4.17 billion reported in the year-ago quarter. Non-GAAP earnings for the quarter were $1.26 per share, showing a year-over-year increase of 46.5%. The company’s total revenues were divided between two main segments. Systems revenues totaled $3.55 billion, accounting for 66.6% of total revenues. This figure saw a 48% increase and a 3% rise from the previous quarter. The Customer Support Business Group contributed $1.77 billion in revenues, making up 33.4% of the total. This was a 2.5% rise sequentially and a modest 0.1% increase from the year-ago period.

Lam Research also provided strong guidance for FQ2 2026. The company projects revenues of ~$5.2 billion, which suggests a year-over-year growth of 9.8%. Non-GAAP EPS is projected to be ~$1.15, based on a diluted share count of 1.26 billion. This EPS guidance indicates a year-over-year growth of 15.4%.

Lam Research Corporation (NASDAQ:LRCX) designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of ICs in the US, China, Korea, Taiwan, Japan, Southeast Asia, and Europe.

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Disclosure: None. This article is originally published at Insider Monkey.