Lam Research PT Lifted to $450; Shares Rally 2.9% on Intel 18A-P News
LRCX•Citi raised Lam Research’s price target to $450 from $315 after projecting wafer fab equipment spending will reach $145 billion in 2026, $200 billion in 2027 and $250 billion in 2028 driven by capacity constraints and surging AI-related NAND demand. In premarket trading Lam Research shares climbed roughly 2.9% following Intel’s confirmation that its 18A-P process reached risk production with a 9% performance boost or 18% power reduction.
1. Citi Raises Lam Research Price Target
Citi increased Lam Research’s price target from $315 to $450 after rolling forward its wafer fab equipment spending model to calendar year 2028. The firm now forecasts bull-case spending of $145 billion in 2026, $200 billion in 2027 and $250 billion in 2028, driven by capacity expansions at TSMC, memory makers and a structural uptick in NAND demand due to AI workloads. Closing the emerging memory supply gap could require two to four greenfield NAND fabs, representing $20–40 billion in capex and $15–30 billion in equipment spending.
2. Premarket Rally on Intel Manufacturing Update
Lam Research shares climbed about 2.9% in premarket trading after Intel announced its 18A-P node hit risk production, delivering a 9% performance gain or an 18% power cut at equivalent speeds. The process’s thermal and design-rule compatibility improvements bolster wafer fab equipment demand prospects, as chipmakers seek new capacity and design flexibility for AI and advanced logic applications.
