Bank of America Lifts Lam Research Target to $480 on Rising WFE Spend
LRCX•Bank of America raised its wafer fab equipment spending forecast to $250 billion by 2028 and $292 billion by 2030, driving a lift in Lam Research’s price target to $480 from $330. The upgrade reflects stronger AI data center, memory and CPU equipment demand boosting WFE complexity and spend.
1. Revised Semiconductor Equipment Forecast
Bank of America lifted its wafer fab equipment spending projection to $250 billion by 2028 and $292 billion by 2030, pushing its total semiconductor industry forecast to $2.7 trillion by 2030 at a 28% CAGR from 2025.
2. Five Growth Themes
Analysts identified five key drivers—AI data center systems (TAM rising from $273 billion in 2025 to $1.7 trillion by 2030), memory strength via long-term supply agreements, reshoring benefits for complex chips, surging analog chip demand, and a $170 billion agentic CPU opportunity.
3. Lam Research Price Target Raised
Lam Research’s target was increased to $480 from $330 as wafer fab equipment demand climbs on AI-driven chip complexity, stronger memory segment growth and expanded CPU and foundry spending.
4. Implications for Lam Research
Enhanced WFE forecasts and thematic tailwinds suggest Lam Research is well positioned to capture elevated capex cycles, supporting higher revenue visibility through 2030.
