What Happened?
Shares of semiconductor equipment maker Lam Research (NASDAQ: LRCX) jumped 1.6% in the morning session after Morgan Stanley raised its price target on the stock to $158 from $137. The firm kept its "Equal Weight" rating on the shares. This decision came as the analyst firm increased its forecast for the Wafer Fab Equipment (WFE) market, which is the machinery used to create computer chips. The firm's 2027 WFE forecast was lifted to $145 billion, marking a 13% increase from its prior projection. The stock's rise also occurred during a session that saw broad strength across the chip-making sector, providing a positive lift for the industry.
After the initial pop the shares cooled down to $161.56, up 1.8% from previous close.
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What Is The Market Telling Us
Lam Research’s shares are very volatile and have had 22 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 2.9% on the news that Morgan Stanley raised its price target on the stock to $158 from $137. The firm maintained its "Equalweight" rating on the shares. This adjustment signaled a more positive outlook on the company's valuation from the investment bank. The move came as the semiconductor equipment maker had been drawing interest from investors, reportedly due to its robust financial stance and potential for growth.
Lam Research is up 123% since the beginning of the year, and at $161.56 per share, it is trading close to its 52-week high of $166.37 from November 2025. Investors who bought $1,000 worth of Lam Research’s shares 5 years ago would now be looking at an investment worth $3,158.
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