Lam Research Surpasses Q2 Estimates, Shares Rise
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Earnings Beat: Lam Research's fiscal Q2 results exceeded expectations with a 22% year-over-year revenue increase, leading to a premarket share rise of about 4%, reflecting the company's strong performance in the semiconductor equipment sector.
- Positive Outlook: Management anticipates approximately 23% growth in wafer fabrication equipment (WFE) for 2026, surpassing market expectations, indicating sustained strong demand in DRAM and leading-edge logic, which further solidifies its market position.
- Analyst Upgrades: RBC Capital Markets maintained an Outperform rating on Lam and raised the price target from $260 to $290, reflecting confidence in the company's future growth, particularly against the backdrop of generative AI and tight memory supply.
- Supportive Industry Trends: Analysts noted that with technological transitions like MolyB and 4F2, Lam Research is poised to benefit from multiple market drivers in the coming years, expecting continued growth across all market segments.
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Analyst Views on LRCX
Wall Street analysts forecast LRCX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LRCX is 192.50 USD with a low forecast of 142.00 USD and a high forecast of 265.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
18 Buy
4 Hold
0 Sell
Strong Buy
Current: 239.580
Low
142.00
Averages
192.50
High
265.00
Current: 239.580
Low
142.00
Averages
192.50
High
265.00
About LRCX
Lam Research Corporation is a global supplier of wafer fabrication equipment and services to the semiconductor industry. The Company designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. Its products and services are designed to help its customers build devices that are used in a variety of electronic products, including mobile phones, personal computers, servers, wearables, automotive vehicles, and data storage devices. Its product families include ALTUS, SABRE, SPEED, Striker, VECTOR, Flex, Vantex, Kiyo, Versys Metal, Syndion, Coronus, and DV-Prime, Da Vinci, EOS, and SP Series. Its customer base includes semiconductor memory, foundries, and integrated device manufacturers that make products such as non-volatile memory, dynamic random-access memory, and logic devices. It offers services in areas, such as nanoscale applications enablement, chemistry, plasma and fluidics, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Lam Research Reports Strong Q2 Earnings Beat
- Earnings Beat: Lam Research reported Q2 earnings of $1.27 per share, exceeding Wall Street's estimate of $1.17 by 8.45%, indicating robust performance in the semiconductor equipment sector.
- Revenue Growth: The quarterly revenue reached $5.35 billion, surpassing the analyst consensus of $5.24 billion and significantly up from $4.38 billion year-over-year, reflecting sustained strong market demand.
- Outlook: The company anticipates Q3 adjusted EPS between $1.25 and $1.45, above the analyst estimate of $1.20, with revenue expected between $5.4 billion and $6 billion, showcasing future growth potential.
- Stock Reaction: Lam Research shares rose 2.9% to $246.50 in pre-market trading, reflecting positive market sentiment towards the company's earnings and outlook.
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