Lam Research Sees $254 Target, 23%/27% Growth Forecasts and Record Revenue
Morgan Stanley raised its price target on Lam Research to $254 from $244, boosting wafer fab equipment market growth forecasts to 23% for 2026 and 27% for 2027. The company reported fiscal Q2 revenue above guidance midpoint, record annual revenue over $20 billion, and mid-30% market share with expanding Akara etch adoption.
1. Analyst Raises Price Target and Forecasts
Morgan Stanley raised its price target on Lam Research to $254 from $244 while boosting wafer fabrication equipment market growth forecasts to 23% for 2026 and 27% for 2027, reflecting stronger expected DRAM spending.
2. Fiscal Q2 Performance Exceeds Guidance
The company reported fiscal Q2 revenue above the midpoint of its guidance, with gross margins, operating margins, and earnings per share all surpassing the high end of expectations.
3. Record Annual Revenue and Market Share Gains
Lam Research delivered record annual revenue exceeding $20 billion and increased its wafer fabrication equipment market share into the mid-30% range, driven by leadership in deposition and etch technologies essential for AI and advanced packaging.
4. Technology Adoption and Service Growth
The installed base for the Akara etch system doubled over the past year with expected further doubling as customers adopt next-generation gate-all-around technologies, while the customer support business group surpassed 100,000 chambers, boosting service revenue growth.