Lam Research stock surges 7% on analyst upgrades
Lam Research stock surged nearly 7% Thursday, fueled by analyst upgrades from Mizuho and TD Cowen, which both set price targets of $400. The rally coincides with a broader tech sector upswing and optimism over AI-related semiconductor capital spending. Technical indicators show the stock remains in a bullish uptrend, trading well above key long-term moving averages despite a recent pullback. Investors are also looking ahead to quarterly earnings on July 29, with expectations of $1.68 per share on $6.66 billion revenue.
*this image is generated using AI for illustrative purposes only.
Lam Research Corp. (NASDAQ: LRCX) stock climbed nearly 7% on Thursday as investors poured into semiconductor equipment stocks during a broad technology rally. The Nasdaq gained 1.51%, while the S&P 500 rose 0.68%. Lam Research also received fresh analyst support on Thursday, further boosting sentiment. Mizuho maintained its Outperform rating and raised its price forecast to $400 from $380, while TD Cowen maintained its Buy rating and lifted its price forecast to $400 from $340. The upbeat analyst actions reinforced optimism around the company’s long-term growth prospects amid continued AI-driven semiconductor spending.
Analyst Ratings and Price Targets
The table below summarizes the updated ratings and price targets for Lam Research:
| Firm | Rating | Previous Target | New Target |
|---|---|---|---|
| Mizuho | Outperform | $380 | $400 |
| TD Cowen | Buy | $340 | $400 |
| Morgan Stanley | Overweight | N/A | $404 |
| Susquehanna | Positive | N/A | $475 |
Analysts remain broadly bullish on the stock. Mizuho raised its price forecast to $400 on Thursday while maintaining an Outperform rating. Earlier this month, Morgan Stanley lifted its price forecast to $404 and reiterated its Overweight rating. Susquehanna also increased its price forecast to $475 in late June while maintaining a Positive rating.
Technical Trend Remains Bullish
LRCX continues to trade well above its key long-term moving averages, keeping its broader uptrend intact. The stock remains about 56% above its 200-day simple moving average and roughly 26% above its 100-day moving average. It also trades about 8% above its 50-day moving average. However, the shares remain about 5% below the 20-day moving average after pulling back from their June peak. That suggests the stock is consolidating rather than reversing its longer-term trend. The relative strength index stands at 50.12, indicating neutral momentum. A key technical support level sits near $302.50, where buyers previously stepped in.
AI Spending Keeps Company In Focus
Lam Research is one of the world’s largest suppliers of semiconductor manufacturing equipment. The company specializes in etch and deposition systems used to produce advanced chips. Its customers include major chipmakers. As a result, the company is widely viewed as a direct beneficiary of rising semiconductor capital spending, particularly in AI-related memory and logic chip production.
Earnings Preview
Lam Research is scheduled to report quarterly results on July 29. Wall Street expects earnings of $1.68 per share on revenue of $6.66 billion, compared with earnings of $1.33 per share on revenue of $5.17 billion a year earlier.
How might Lam Research's upcoming earnings report on July 29 influence investor sentiment regarding AI-driven semiconductor spending?
What are the potential risks to Lam Research's growth trajectory if AI-related capital spending slows in the near term?
Could the current consolidation phase in LRCX's stock price signal a broader trend for semiconductor equipment stocks?
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