Lam Research (LRCX) Poised to Benefit From Expanding Advanced Foundry and NAND Investments

Lam Research Corporation (NASDAQ:LRCX) is among Goldman Sachs’ top semiconductor stock picks. On January 14, Stifel raised its price target on Lam Research Corporation (NASDAQ:LRCX) to $250 from $160 and maintained a Buy rating on the stock. The firm made this move in response to Lam Research’s strong performance in 2025. During calendar year 2025, the company’s system sales grew by more than 40% year over year. Stifel noted that this rate significantly outpaced overall wafer fabrication equipment (WFE) growth in the industry.

Stifel added that early signals indicate Lam Research is likely to “exceed WFE growth again” in calendar year 2026. The analysts see this as evidence of sustained momentum in demand for equipment and tools used to build semiconductor chips. They also highlighted that the Advanced Foundry/Logic segments are expected to be larger dollar contributors to WFE spending in 2026. This development, the analysts stated, marks a shift from previous growth drivers and underscores Lam Research’s broader opportunity beyond memory-focused equipment.

Later on the same day, January 14, RBC Capital initiated coverage on Lam Research with an Outperform rating and set a price target of $260. Like Stifel, RBC highlighted Lam Research’s strong results in 2025, which it said were driven by upgrades in NAND technology and gains in the foundry market share. The firm expressed optimism about spending on wafer fabrication equipment and stated that it remains positive on WFE spending. Most importantly, RBC expects Lam Research to continue to outgrow the market.

Lam Research Corporation (NASDAQ:LRCX) is a semiconductor equipment company. It develops and supplies wafer fabrication tools, including deposition, etch, and clean systems, which are essential in manufacturing integrated circuits.

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