Lam Research Shares Surge 4.6% Following Deutsche Bank Upgrade

Shares of Lam Research Corporation (NASDAQ: LRCX) experienced a notable increase of 4.6% on Friday, following an upgrade from Deutsche Bank Aktiengesellschaft. The financial institution raised its price target for the company from $160.00 to $195.00, maintaining a buy rating on the stock. The shares reached a high of $173.58 during trading before closing at $172.27.

In total, approximately 38,075,867 shares changed hands, an impressive increase of 222% compared to the average daily trading volume of 11,833,610 shares. Prior to this surge, Lam Research’s stock closed at $164.70.

Analyst Insights

Lam Research has attracted attention from several financial institutions recently. On September 30, HSBC set a price target of $127.00 for the company, assigning it a hold rating. Meanwhile, Citigroup raised its target from $175.00 to $190.00 on November 11, supporting a buy rating. Barclays issued a target of $142.00 and categorized the stock as equal weight, while New Street Research increased its pricing estimate from $105.00 to $140.00 with a neutral rating. Cantor Fitzgerald reiterated an overweight rating with a target of $210.00.

According to MarketBeat.com, the consensus shows that 26 analysts currently rate the stock as a buy, while ten have issued hold ratings. The average rating for Lam Research stands at “Moderate Buy” with a consensus price target of $160.37.

Market Sentiment

Positive sentiment surrounding Lam Research has intensified this week, fueled by three firms expressing bullish outlooks on the stock. Analysts have increasingly focused on anticipated demand for semiconductor equipment in 2026, contributing to a significant intraday rally. Both Mizuho and B. Riley adjusted their price targets to $200.00 and $195.00, respectively, further bolstering investor confidence.

The stock gained recognition as Investor’s Business Daily noted its potential, highlighting all-time highs based on expanding prospects for 2026. Technical indicators have also shown positive signs; Zacks reported a “golden cross” pattern, typically indicative of bullish trends.

Institutional Investor Activity

Recent modifications by institutional investors reflect growing confidence in Lam Research. Sava Infond d.o.o. increased its holdings by 3.1% in the second quarter, now owning 75,250 shares valued at $7,325,000. Other notable transactions include Horizon Bancorp Inc. acquiring a new stake worth $389,000, and Empowered Funds LLC raising its investment by 10.5% to 187,472 shares valued at $13,629,000. Overall, institutional investors and hedge funds own 84.61% of Lam Research’s stock.

Financial Performance

Lam Research last reported its quarterly earnings on October 22, 2023, achieving $1.26 earnings per share, surpassing the consensus estimate of $1.22 by $0.04. The company experienced a net margin of 29.66% and a return on equity of 60.60%. Revenue for the quarter reached $5.32 billion, exceeding analyst estimates of $5.23 billion and marking a year-over-year increase of 27.7%.

Upcoming Dividend Announcement

In addition to its stock performance, Lam Research recently announced a quarterly dividend of $0.26 per share, set to be paid on January 7, 2024. Shareholders on record by December 3, 2023, will be eligible for this dividend, which translates to an annualized yield of 0.6%. Currently, the company maintains a dividend payout ratio of 22.91%.

Company Overview

Founded in 1980 and headquartered in Fremont, California, Lam Research Corporation is a leading supplier of wafer fabrication equipment and services to the semiconductor industry. The company specializes in systems used in various stages of semiconductor device production, including thin film deposition, plasma etch, and wafer cleaning. Lam Research’s portfolio supports core process technologies essential for logic and memory manufacturers, catering to advanced-node patterning and emerging device architectures.

As Lam Research continues to navigate the dynamic semiconductor market, analysts and investors remain focused on its growth potential and financial health.