Evercore ISI raised its price objective on Lam Research to $275 from $241 and maintained an Outperform recommendation on the semiconductor equipment supplier's shares. The new target stands above prevailing analyst consensus, with InvestingPro data showing an average recommendation of 1.72, characterized as a Strong Buy among Wall Street analysts.
Evercore pointed to Lam Research's recent quarterly results and the company's upward revision to its outlook as the basis for the target increase. Management now expects wafer fabrication equipment spending in 2026 to reach $135.0 billion, a figure Evercore highlighted as representing a 23% year-over-year rise and about 13% above both Evercore's and broader Wall Street estimates, which had been $120.0 billion.
That outlook comes amid solid reported financial performance. Lam Research delivered diluted earnings per share of $4.53 over the last twelve months, and the company has posted revenue expansion of 25.66% over the same period, according to the metrics cited by Evercore.
Evercore further attributed the projected strength to robust demand across leading-edge foundry and logic markets as well as DRAM memory markets, an assessment consistent with the firm's earlier commentary suggesting favorable fundamentals for the semiconductor equipment group.
Market moves to date reflect investor enthusiasm: Lam Research shares have risen roughly 30% year-to-date, outpacing the S&P 500's gain of 2% over the same stretch. The broader semiconductor capital equipment sector has advanced between 20% and 40% during the period referenced.
On valuation, Evercore noted that Lam Research is trading at about 42 times earnings, which represents an 83% premium compared with the S&P 500. Despite the premium multiple, Evercore expects Lam Research to retain that valuation as wafer fabrication equipment spending accelerates into 2027 and the company stands to benefit from increased spending across memory and leading-edge foundry and logic segments.
Quarterly results and peer responses
Lam Research reported second-quarter results for fiscal 2026 that exceeded expectations. The company posted adjusted earnings per share of $1.27, ahead of an expected $1.16, and reported revenue of $5.34 billion versus forecasts of $5.21 billion.
Following the results and the company's raised guidance, several other research firms adjusted their targets upward. RBC Capital increased its price target to $290 from $260, citing a robust wafer fabrication equipment environment and market share gains. BofA Securities lifted its target to $285 from $245, describing the quarter as a "solid beat and raise" and signaling what it called the beginning of an accelerating growth phase.
Oppenheimer moved its target to $265 from $200, referencing Lam Research's guidance for substantial revenue growth in calendar year 2026 and underscoring a projected 23% increase in wafer fabrication equipment spending along with a market share gain. Summit Insights upgraded the stock from Hold to Buy, forecasting that Lam Research will capture a significant portion of the opportunity presented by an upcoming technology transition across DRAM, logic, and NAND memory segments.
Implications and context
The cluster of upward revisions by analysts reflects a consensus view among the research community that Lam Research's current results and guidance point to a more favorable demand environment for semiconductor capital equipment. Analysts point to strength across memory and leading-edge processing markets and to potential market share gains as drivers of the revised outlook.
At the same time, valuation remains rich relative to the broad market, and future performance will depend on the persistence of elevated wafer fabrication equipment spending and the company's ability to sustain market share gains.
Readers should note that the figures and analyst reactions cited above reflect the information provided by the various firms and the company as reported in the updates referenced.