BofA Securities has raised its price target for Lam Research (NASDAQ:LRCX) to $285 from $245 and retained a Buy recommendation on the semiconductor equipment maker, citing what it characterized as a "solid beat and raise" that signals the start of an accelerating growth phase within a multi-year wafer fabrication equipment (WFE) cycle.
The stock is trading at $239.58 and has returned 221.72% over the past 12 months, approaching its 52-week high of $243.99. Despite the strong share performance, InvestingPro data flags Lam Research as appearing overvalued at current levels.
BofA's view follows Lam Research's most recent reported quarter, where the company posted fiscal second-quarter earnings of $1.27 per share versus consensus expectations of $1.16, and revenue of $5.34 billion compared with the $5.21 billion forecast. Over the trailing year, Lam recorded revenue growth of 25.66%, reinforcing its status as a major participant in the Semiconductors & Semiconductor Equipment industry.
In its note, BofA referenced the broader WFE market outlook, projecting the market will reach roughly $135 billion in calendar 2026, up about 23% year-over-year from an expected $110 billion in 2025. The firm expects growth to be distributed across foundry/logic, DRAM and NAND segments, with activity skewed toward the second half of the year.
BofA also highlighted Lam Research's market-share dynamics, noting the company gained one percentage point of share in 2025 and forecasting additional share gains in 2026, particularly in NAND and leading-edge foundry/logic. The bank expects that growth to come primarily from regions outside China.
Reflecting these assumptions and product strength, BofA substantially raised its calendar year 2026 and 2027 earnings-per-share estimates for Lam Research by 19% and 18%, to $5.94 and $6.94, respectively. The firm attributed the revisions to Lam's differentiated etch and deposition platforms, which it said are preferable as capital spending shifts toward technology inflections including gate-all-around (GAA) architecture, backside power delivery (BSPD), high bandwidth memory (HBM) and 4F2 DRAM.
Lam Research currently trades at a price-to-earnings ratio of 53.13, a level that reflects elevated growth expectations and a premium relative to historical norms. The company carries a market capitalization of $300.92 billion and earns an overall financial health rating of "GREAT" on InvestingPro.
Other brokerages have adjusted their stances in recent days. Oppenheimer lifted its price target on Lam Research from $200 to $265 while maintaining an Outperform rating, pointing to management guidance that anticipates revenue growth of at least 24% by 2026, above Oppenheimer's earlier estimate of 19%. The firm cited an expected 23% increase in WFE spending and more than a 1% gain in market share as drivers of the upgraded outlook.
Summit Insights also changed its view of Lam Research, upgrading the stock from Hold to Buy. That revision reflects an expectation that Lam will capture a meaningful slice of demand through the forthcoming technology transitions across DRAM, logic and NAND memory segments.
Taken together, the analyst actions, the company's reported quarter and the industry forecasts underpin a constructive near-term narrative for Lam Research. At the same time, public valuation measures and third-party commentary indicate investors are paying a premium for those expected gains.
Context and metrics
- Stock price: $239.58 (trading near 52-week high of $243.99)
- 12-month return: 221.72%
- Fiscal Q2 EPS: $1.27 vs. $1.16 expected
- Fiscal Q2 revenue: $5.34 billion vs. $5.21 billion expected
- Trailing 12-month revenue growth: 25.66%
- Market capitalization: $300.92 billion
- Current P/E: 53.13
Analyst moves and estimates
- BofA: Price target raised to $285 from $245; Buy rating retained; CY2026/2027 EPS raised to $5.94/$6.94 (+19%/+18%).
- Oppenheimer: Price target raised to $265 from $200; Outperform rating retained; cites at least 24% revenue growth by 2026 in management guidance.
- Summit Insights: Rating upgraded from Hold to Buy.
Investors weighing Lam Research should consider both the upward revisions to commercial and technical demand assumptions underpinning analyst upgrades and the valuation premium reflected in current market multiples.