Lam Research Corp. (NASDAQ:LRCX) stock rose Thursday, fueled by a strong wave of bullish analyst actions led by RBC Capital's initiation of coverage with an Outperform rating and a $260 price forecast.
Adding to the momentum, Wells Fargo upgraded Lam Research to Overweight and raised its price target sharply from $145 to $250, signaling a meaningful shift in confidence around the stock's outlook.
The rally comes as investors also look ahead to Lam Research's December-quarter financial conference call scheduled for January 28, 2026, at 2:00 p.m. Pacific Time.
Further price-target increases from Stifel, Bank of America Securities, and Bernstein—clustered in the $225 to $260 range—reinforce growing optimism around Lam's earnings trajectory. As a critical supplier of wafer fabrication equipment used in nearly every advanced chip, Lam remains firmly in focus heading into the update.
Analyst Consensus & Recent Actions:
The stock carries a Buy Rating with an average price target of $189.18. Recent analyst moves include:
- Wells Fargo: Upgraded to Overweight (Raised Target to $250.00) (Jan. 15)
- RBC Capital: Initiated with Outperform (Target $260.00) (Jan. 15)
- Stifel: Buy (Raised Target to $250.00) (Jan. 14)
Valuation Insight: While the stock trades at a premium P/E multiple, the strong consensus and 29% expected earnings growth suggest analysts view this growth as justification for the current valuation.
LRCX Shows Strong Performance Above SMA Indicators
The stock is currently trading 17.2% above its 20-day simple moving average (SMA) and 46.9% above its 100-day SMA, demonstrating strong short-term and longer-term strength. Shares have increased 186.99% over the past 12 months and are currently positioned closer to their 52-week highs than lows.
The RSI is at 65.75, which is considered neutral territory, indicating that the stock is neither overbought nor oversold. Meanwhile, MACD is above its signal line, suggesting bullish momentum in the stock.
The combination of neutral RSI and bullish MACD suggests positive momentum.
- Key Resistance: $222.50
- Key Support: $200.00
LRCX Earnings Forecast: EPS and Revenue Growth Expected
Investors are looking ahead to the next earnings report on January 28, 2026.
- EPS Estimate: $1.17 (Up from $0.91 YoY)
- Revenue Estimate: $5.23 billion (Up from $4.38 billion YoY)
- Valuation: P/E of 46.1x (Indicates premium valuation)
LRCX Scores High on Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Lam Research Corp (LRCX), highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bullish (Score: 97.21/100) — Stock is outperforming the broader market.
- Quality: Strong (Score: 96.21/100) — Balance sheet remains healthy.
- Value: Risk (Score: 7.84/100) — Trading at a steep premium relative to peers.
The Verdict: Lam Research Corp’s Benzinga Edge signal reveals a classic ‘High-Flyer’ setup. While the Momentum (97) confirms the strong trend, the extremely low Value (7.84) score warns that the stock is priced for perfection—investors should ride the trend but use tight stop-losses.
Significant ETF Exposure to LRCX
- First Trust Nasdaq Semiconductor ETF (NASDAQ:FTXL): 5.46% Weight
- Invesco Semiconductors ETF (NYSE:PSI): 5.24% Weight
- Castellan Targeted Equity ETF (NASDAQ:CTEF): 7.64% Weight
Significance: Because LRCX carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
LRCX Price Action: Lam Research shares were up 5.98% at $221.28 at the time of publication on Thursday. The stock is trading near its 52-week high of $222.58, according to Benzinga Pro data.
Photo by Michael Vi via Shutterstock
