Analyst Vivek Arya of Bank of America Securities maintained a Buy rating on Lam Research (LRCX – Research Report), retaining the price target of $90.00.
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Vivek Arya has given his Buy rating due to a combination of factors that highlight Lam Research’s strong market positioning and growth potential. The company is well-positioned to navigate tariff risks and is expected to outperform the wafer fab equipment (WFE) market by a factor of two through 2028. This is attributed to the expansion of its serviceable addressable market (SAM) share of WFE, where Lam Research can capture over 50% of the increase due to its strategic portfolio positioning.
Additionally, Lam Research’s previous investments in strengthening its supply chain and increasing capacity closer to customers have mitigated the impact of tariffs, particularly for non-US sales. The company’s operational improvements during the NAND downturn have structurally improved its gross margins, moving closer to a long-term target of 50%. Furthermore, multiple growth drivers, such as foundry share gains and NAND upgrades, are expected to enable Lam Research’s outperformance relative to its peers and the industry. Despite some headwinds from restrictions impacting sales, Lam Research’s strategic initiatives and market dynamics position it for continued growth.
In another report released on April 25, Argus Research also reiterated a Buy rating on the stock with a $105.00 price target.