Oppenheimer has increased its price target on Lam Research Corp. to $265.00 from $200.00 and retained an Outperform rating on the semiconductor equipment maker. The new target sits above the stock’s trading level of $239.58 and close to its 52-week high of $243.99 - about 1% higher than the current price.
The research house pointed to Lam’s implicit guidance for calendar year 2026 as the key driver for the revision. Management’s directional commentary implies roughly 24% or greater revenue growth in that year, outpacing Oppenheimer’s earlier view of approximately 19% growth. That projection reflects an expected 23% rise in wafer fabrication equipment spending plus a little more than 1% of market share gains.
Oppenheimer also adjusted its model to reflect the stronger outlook. The firm raised its fiscal year 2026 revenue and earnings-per-share estimates by 4% and 7% respectively, and increased its fiscal year 2027 revenue and EPS estimates by 7% and 11%. The analyst emphasized that Lam’s momentum is sufficiently strong to warrant these upward revisions.
Company performance to date supports the firmer guidance. According to InvestingPro data cited by the research firm, Lam delivered 25.7% revenue growth over the last twelve months and has posted a 13% compound annual revenue growth rate over the past five years. At the same time, InvestingPro indicates that the stock appears overvalued relative to its calculated Fair Value.
Management flagged a constraint that could shape the timing of demand realization - cleanroom availability. Oppenheimer noted that Lam indicated this capacity limitation could mean some of the current demand is effectively deferred, potentially extending elevated growth into calendar year 2027 as constrained customers gain access to additional cleanroom capacity.
Reflecting confidence in the business, Lam has said it will update its multi-year financial targets, which currently stand at $26 billion in revenue and $6.50 in earnings per share by calendar year 2028. The research firm underscored that Lam rarely offers annual guidance or multi-year directional commentary, and described the company’s statements as an unusual signal of conviction about accelerating momentum.
Beyond the guidance and model changes, Lam’s most recent quarterly results reinforced the bullish case. In the second quarter of fiscal year 2026, Lam reported EPS of $1.27, beating a $1.16 consensus and representing a 9.48% surprise. Revenue for the quarter was $5.34 billion versus expectations of $5.21 billion.
Market research firm Summit Insights also updated its view of the company, upgrading Lam’s rating from Hold to Buy. Summit Insights cited an expectation that Lam will capture substantial share across the next transition in DRAM, logic and NAND memory technologies.
Oppenheimer continues to rank Lam Research as its top pick within the semiconductor capital equipment sector, stating the company is best-positioned to address demand driven by artificial intelligence. The research house, however, warned investors to be mindful of overly optimistic sentiment in the group.
Taken together, the analyst upgrade, refreshed estimates and recent quarterly outperformance point to a trajectory of stronger revenue and profit expectations for Lam Research, while market valuation metrics and capacity constraints remain relevant considerations for investors.