Argus has raised its price target for Lam Research (NASDAQ: LRCX) to $280 from $275 and reaffirmed a Buy rating on the maker of semiconductor fabrication equipment. The new target remains below the analyst high of $325 but stands above InvestingPro's Fair Value assessment, a gap that the research notes suggest could indicate the shares are trading at a premium relative to that internal valuation.
The Argus action comes on the heels of Lam Research's fiscal second-quarter 2026 report, which outperformed consensus expectations. Management's results and forward guidance helped drive a 4% gain in LRCX shares on January 29, even as broader markets declined the same day. The move is part of a much larger upward trend: InvestingPro data cited alongside the announcement shows a total return of 198.9% over the past 12 months and 147.3% across the last six months.
Financial results for fiscal 2Q26 were notable across multiple dimensions. Revenue totaled $5.35 billion, up 22% from the same period a year earlier. On a per-share basis, non-GAAP earnings came in at $1.27, a 39% increase year-over-year. The top-line figure exceeded the midpoint of Lam's own guidance range for the quarter, and EPS surpassed the high end of the expected range.
Lam delivered a 49.8% gross profit margin in the quarter and reported cash flows strong enough to comfortably cover interest obligations. The company described the quarter as record-setting in several categories, including revenue, adjusted gross margin, adjusted operating margin and adjusted net income. This performance continues a recovery and expansion that began in fiscal 2025 after a down year in fiscal 2024.
Independent metrics cited in the report reinforce the operational narrative. InvestingPro assigns Lam Research an overall financial health rating of "GREAT" with a score of 3.16, a composite meant to reflect profitability and price momentum. The platform also notes additional research tools - more than 20 ProTips and supplementary metrics - available to subscribers in a Pro Research Report covering the company.
Looking ahead, Lam's fiscal third-quarter 2026 guidance was delivered above analyst consensus that existed before the earnings release. That upside helped underpin Argus's more bullish posture. InvestingPro's analyst-tracking figures show 19 analysts raised their earnings estimates heading into the new period, and the consensus recommendation among analysts sits at 1.67, a value positioned between Strong Buy and Buy.
Lam's recent results have prompted a series of price-target increases across the brokerage community. Stifel, noting that Lam's December quarter results and March quarter guidance beat both its own and consensus expectations, lifted its target to $280 while keeping a Buy rating. Cantor Fitzgerald increased its target to $320, highlighting calendar-year 2025 tool revenue that outpaced the broader industry. Bernstein raised its target to $275, citing accelerated growth prospects and the potential for Lam to reach long-term targets sooner than previously anticipated. TD Cowen issued a more aggressive bump to $290 based on a favorable outlook for the wafer fabrication equipment market in 2026.
Beyond financial updates, Lam Research disclosed a new multi-year collaboration with CEA-Leti to pursue next-generation specialty technology devices. The partnership is targeted at developing energy-efficient semiconductor solutions and will explore novel materials and fabrication processes for advanced technologies.
Taken together, the earnings beat, elevated guidance and a string of analyst target increases underscore a consensus view among many equity analysts that Lam Research is positioned for continued strength in the near term. At the same time, the company’s valuation relative to InvestingPro's fair value indicates that some market participants may view current share prices as richly priced.
Contextual note: The developments described here - the Argus target change, the quarterly results, analyst target revisions and the CEA-Leti collaboration - reflect the information released by the company and the analyst community as summarized above.