Lam Research Stock Gets A Price Target Hike At Jefferies On Strong Sales Outlook: Retail's Not Buying It Yet

Lam Research Corp. (LRCX) could stand to benefit from the surging demand for dynamic random access memory (DRAM) and NAND flash memory thanks to artificial intelligence, according to Jefferies analysts.

According to The Fly, Jefferies maintained a ‘Buy’ rating on the Lam Research stock and hiked the price target to $100 from $95, implying an upside of 34% from Thursday’s closing price.

The brokerage noted that it expects a strong surge in demand for DRAM modules, as well as the beginning of a recovery in demand for NAND storage modules.

It underscored that Lam Research stands to scoop an outsized share of the recent capital expenditure commitments made by big technology companies toward infrastructure upgrades.

The Fremont, California-based company supplies wafer-fabrication equipment and other related services to the semiconductor industry.

Lam Research posted earnings per share of $0.91 on revenue of $4.38 billion in the fourth quarter, ahead of Wall Street expectations.

"Lam is executing at a high level at a pivotal moment for semiconductor manufacturing. Increasing demands on chip performance play into Lam's strengths, with advanced deposition and etch applications set to comprise a growing share of WFE," said CEO Tim Archer.

Retail sentiment on Stocktwits around Lam Research remained in the ‘bearish’ territory despite the price target hike.

Data from Koyfin shows the average price target for Lam Research is $95.41, implying a 28% upside from current levels.

Of the 33 brokerage calls, 23 recommend ‘Strong Buy’ or ‘Buy,’ while 10 have a ‘Hold’ rating.

Lam Research’s stock has gained around 4% year-to-date.

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