Lam Research Corp (NASDAQ:LRCX) and Applied Materials Inc (NASDAQ:AMAT) are contributing to the semiconductor and memory stock rally this morning, after Goldman Sachs hiked its price targets on both names to $380 and $645, respectively.
Lam Research (LRCX) is well positioned to outperform the market, as it exhibits above-average growth in financials.
The latest trading day saw Lam Research (LRCX) settling at $391.17, representing a -9.73% change from its previous close.
Lam Research (LRCX) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
LRCX soars 153.9% in H1'26, and AI infrastructure demand, margin gains and advanced packaging growth may keep the stock's rally alive.
LRCX's AI-fueled demand for advanced memory, foundry and packaging tools could push Q4 gross margin above 50% for the first time.
We think these stocks have gotten ahead of themselves.
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Lam Research (LRCX) concluded the recent trading session at $371.33, signifying a -9.33% move from its prior day's close.
I'm rating Lam Research (LRCX) a Strong Buy rating with a $497 price target, implying 28% upside from $389. My growth drivers are AI-driven WFE and SAM expansion, NAND conversion spending, DRAM and HBM-related deposition intensity, advanced packaging growth, and CSBG services. Together, I estimate these growth drivers can add about $1.11 of incremental EPS and drive the Forward non-GAAP EPS to $7.26.