Lam Research Shares Surge as Analysts Revise Targets Upward

Lam Research has once again demonstrated its role as a cornerstone of the semiconductor equipment sector. The company is outperforming amidst broader market weakness, propelled by a robust quarterly earnings beat and a wave of analyst upgrades.

Stellar Quarterly Results Drive Momentum

The fundamental catalyst for the current optimism stems from Lam Research’s exceptional financial performance for the quarter ending June 29, 2025. The company reported earnings per share (EPS) of $1.33, decisively surpassing the consensus estimate of $1.21. Revenue growth was even more striking, climbing to $5.17 billion against projections of $4.99 billion. This represents a significant 33.6% increase compared to the same quarter last year.

• Earnings Per Share: $1.33 (Estimate: $1.21)
• Revenue: $5.17 billion (Estimate: $4.99 billion)
• Year-over-Year Revenue Growth: +33.6%

This record-setting performance was fueled by notable strength in the foundry segment, particularly from demand originating in China, alongside a rise in NAND flash memory upgrade activities.

Analyst Confidence Reaches a Peak

The impressive financial figures have triggered a series of upward revisions from major financial institutions. The wave of optimism is most evident in the new price targets being issued. Both Mizuho and Argus established their targets at $120. Cantor Fitzgerald raised its target from $115 to $120, simultaneously reaffirming its “Buy” rating for the stock. This consensus among analysts underscores a strong belief in the company’s potential for appreciation.

Should investors sell immediately? Or is it worth buying Lam Research?

Beyond price targets, confidence is also reflected in profit forecasts. Zacks Research significantly increased its Q1 2026 EPS estimate, moving it from $0.96 to $1.18 per share. Its full-year projection remains a solid $3.71. This adjustment signals growing conviction in Lam Research’s near-term profitability.

Major Institutions Amplify Their Positions

The bullish sentiment is not confined to analysts; institutional investors are also making substantial moves. Recent activity shows a dramatic increase in holdings by major funds. Algert Global LLC expanded its position by 149.6% in the first quarter. Ameriprise Financial executed an even more dramatic move, boosting its stake by 950.5% in the fourth quarter. Northern Trust Corp followed with a massive increase of 1,067.0%. These aggressive moves by sophisticated investors highlight a fundamental, long-term belief in the company’s trajectory.

Navigating Market Volatility with Strength

Despite a challenging overall market environment, Lam Research shares closed Monday’s session with a gain of over 1%. Alongside sector peer KLA Corp, it helped offset losses elsewhere in the chip industry. The stock continues to successfully navigate the volatile technology landscape, delivering the operational results necessary to justify the market’s positive outlook. The average price target from 27 analysts currently stands at $107.30, accompanied by a “Moderate Buy” recommendation.