What Happened?

Shares of semiconductor equipment maker Lam Research (NASDAQ: LRCX) jumped 5.9% in the afternoon session after several financial firms showed strong confidence in the company, with one upgrading its stock rating and another starting coverage with a positive outlook. 

Wells Fargo upgraded its rating on Lam Research from "Equal-Weight" to "Overweight" and boosted its price target by a substantial 72.41% to $250.00. In a separate move, RBC Capital Markets initiated coverage on the stock with an "Outperform" rating and a price target of $260. Adding to the positive sentiment, Morgan Stanley also raised its price target on the shares to $211 from $158, although it maintained its "Equalweight" rating. These collective actions signaled strong investor confidence in the company's prospects.

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What Is The Market Telling Us

Lam Research’s shares are very volatile and have had 27 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 6 days ago when the stock gained 8% on the news that Goldman Sachs raised its price target on the stock amid broad strength in the semiconductor industry. The investment bank adjusted its target to $180 from $160 and maintained its Buy rating on the shares. 

Adding to the positive sentiment, Mizuho viewed Lam Research positively and identified the wafer fabrication equipment sector as a top area for 2026. The move came amid a wider rally in chip stocks, which was fueled by reports of strong global semiconductor sales. Sales in the sector rose significantly in late 2025, with industry groups projecting continued growth into 2026. This optimism was reinforced by record sales from key industry players like Taiwan Semiconductor Manufacturing, signaling robust global demand for AI chips.

Lam Research is up 20.2% since the beginning of the year, and at $222.42 per share, has set a new 52-week high. Investors who bought $1,000 worth of Lam Research’s shares 5 years ago would now be looking at an investment worth $4,062.

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