Lam Research Price Target Raised to $340 as WFE Forecasts Rise 21.4%
Analyst David Dai increased Lam Research’s price target to $340 from $325 after raising global wafer fabrication equipment spending forecasts to $148 billion for 2026 (up 21.4%), $175 billion for 2027 and $198 billion for 2028, driven by stronger DRAM demand and China expansions. DRAM WFE spending in 2027 is now forecast to grow 25%.
1. Bernstein Boosts WFE Spending Forecasts
Bernstein raised its global wafer fabrication equipment spending forecasts to $148 billion for 2026 (up 21.4%), $175 billion for 2027 and $198 billion for 2028, reflecting stronger memory investment and China capacity expansion.
2. Lam Research Price Target Increase
The analyst lifted Lam Research’s price target to $340 from $325 while maintaining an Outperform rating, citing the upgraded WFE outlook as a key driver for the stock’s valuation.
3. DRAM and China as Key Growth Drivers
DRAM WFE spending forecasts were revised up to 25% growth in 2027, while China-specific demand was increased by $2.3 billion in 2026, $6.7 billion in 2027 and $16.1 billion in 2028 due to expansion plans at YMTC and CXMT.
4. Multi-Year Upcycle Prospects and Stock Preferences
Bernstein sees the current equipment spending upcycle extending over multiple years and ranks its preferred equipment stocks: Applied Materials first, followed by Lam Research and then KLA.