What Happened?

Shares of semiconductor equipment maker Lam Research (NASDAQ: LRCX) jumped 5.2% in the afternoon session after it received a wave of analyst price target upgrades driven by optimism about its central role in the artificial intelligence (AI) sector. 

Multiple financial firms, including B. Riley, Mizuho, Jefferies, and TD Cowen, raised their price targets for the stock. Analysts pointed to the accelerating demand for Lam's wafer fabrication equipment (WFE), which are the tools needed to build advanced chips for AI applications. The positive sentiment propelled the stock to an all-time high, reflecting a broader conviction that the company was a key beneficiary of the sustained investment in data centers and AI infrastructure.

The shares closed the day at $172.35, up 4.8% from previous close.

Is now the time to buy Lam Research? Access our full analysis report here.

What Is The Market Telling Us

Lam Research’s shares are very volatile and have had 23 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock gained 5.9% on the news that several analysts raised their price targets on the stock, citing confidence in the company's outlook. 

B. Riley lifted its price target to $195 from $180 and maintained its Buy rating. Similarly, analysts at Mizuho and Jefferies both increased their price targets to $200, with Mizuho keeping an "Outperform" rating on the shares. This wave of positive sentiment from analysts followed reports of the company's strong performance in its systems revenues. In the first quarter of fiscal 2026, this segment's sales surged 48.3% compared to the previous year, with a significant portion of that growth driven by demand from the artificial intelligence (AI) sector.

Lam Research is up 138% since the beginning of the year, and at $172.42 per share, has set a new 52-week high. Investors who bought $1,000 worth of Lam Research’s shares 5 years ago would now be looking at an investment worth $3,568.

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