In a report released today, Charles Shi from Needham maintained a Buy rating on Lam Research, with a price target of $115.00.
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Charles Shi has given his Buy rating due to a combination of factors influencing Lam Research’s performance. The company reported a robust quarter, exceeding expectations and revising its full-year wafer fabrication equipment (WFE) outlook upward from $100 billion to $105 billion, primarily driven by increased demand from China. This growth in China is expected to contribute to more than 35% of the company’s revenue in the third quarter of 2025.
Despite concerns that the strength in China might diminish in the fourth quarter of 2025, potentially impacting revenue and gross margins, the overall outlook remains positive. The market may continue to debate the implications of strong Chinese demand for Lam Research, but Charles Shi’s estimates for the company’s performance in 2026 have been adjusted upward, justifying a slight increase in the price target to $115 and maintaining a Buy rating.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $125.00 price target.