Wall Street closes at a record for the first time since end of January
Investing.com - Lynx Equity raised its price target on Lam Research stock (NASDAQ:LRCX) to $325 from $280, citing improved visibility into 2028.
The firm set the new target based on a 33x multiple over its 2028 earnings per share estimate, up from its previous target of $280 based on 35x over 2027 estimates. Lynx Equity models 2028 revenue at $37 billion with earnings per share of $9.8, representing revenue growth of 13% year-over-year, compared to consensus estimates of $32 billion in revenue and $9.3 in earnings per share with flat year-over-year revenue.
The firm expects wafer fabrication equipment spending to reach $190 billion in 2028, up from $160 billion to $170 billion in 2027 and $135 billion to $140 billion in 2026. Lynx Equity said it expects 2028 estimates to move higher after the upcoming earnings call.
Since Lam Research’s Investor Day in February 2025, the stock has risen 220%, compared with gains of 135% for Applied Materials, 105% for ASML, and 80% for the SOX semiconductor index. The stock is currently trading at $267.32, near its 52-week high of $268.23, with a remarkable one-year return of nearly 297%. However, InvestingPro data suggests the stock may be overvalued relative to its Fair Value, placing it among companies on the most overvalued list. The firm said the stock has priced in 2026 and 2027 earnings but sees further upside as investors look toward what it expects to be NAND-heavy years in 2028 and beyond.
Lynx Equity said it expects ASML to be sold out of available capacity into 2027 and that ASML shipment capacity may be the bottleneck for wafer fabrication equipment in 2027.
In other recent news, Lam Research reported that management forecasts sales of around $5.7 billion for the current quarter, with a gross margin of 49%. Erste Group has downgraded Lam Research’s stock rating to hold from buy, citing increased margin risks despite the growing demand for specialized semiconductor wafer manufacturing equipment. Meanwhile, Stifel has raised its price target for Lam Research stock to $300 from $280, maintaining a buy rating due to the company’s exposure to wafer fabrication equipment opportunities. Morgan Stanley highlighted that Lam Research is experiencing unprecedented demand visibility, with discussions now extending to next year’s needs to ensure supply readiness. In leadership developments, Lam Research announced a transition with Sesha Varadarajan being promoted to Chief Operating Officer, effective March 6, 2026. Additionally, Karthik Rammohan’s role has been expanded to Senior Vice President of Global Operations and Enterprise Solutions. The company also appointed Dr. Anirudh Devgan, CEO of Cadence Design Systems, to its board of directors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.