UBS Reiterates Buy Rating on Lam Research

UBS analyst Timothy Arcuri reiterated a Buy rating and $310.00 price target on Lam Research (NASDAQ: LRCX).

“After many years of SPE being driven mostly by growth from China, LRCX is finally embarking on the AI-fueled supercycle – much like we have seen with NVDA/AVGO and memory makers over the past few years and Street numbers here should start to inflect considerably higher.

WFE is still constrained this year by a lack of new cleanroom, but LRCX still tweaked WFE a bit higher and now in-line w/ our model.

From here, we see sufficient demand for WFE to approach $190-200B next year and we were encouraged by LRCX’s commentary about how business is lining up – especially with mega-projects like Terafab (via INTC, we think) now taking shape.

Unless memory revenue totally collapses in C2028 – which seems very unlikely – semiconductor revenue should hold ~$2T+, a level that can easily support WFE in the ~$240-250B range, though this may depend to some degree on equipment supply.”

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