Buy Rating on Lam Research Corp. Backed by Cyclical Recovery and Technology Expansion

Goldman Sachs analyst Toshiya Hari has reiterated their bullish stance on LRCX stock, giving a Buy rating on April 23.

Toshiya Hari has given his Buy rating due to a combination of factors that indicate a positive trajectory for Lam Research Corp. (LRCX). He is encouraged by the cyclical recovery in the company’s serviceable installed base business, alongside early signs of recovery in the NAND sector. Additionally, Hari notes the growing contributions from the expansion of capacity in High-Bandwidth Memory and Gate-All-Around transistors, which are expected to drive an increase in Wafer Fab Equipment demand through 2025.
Despite potential headwinds from the China market, Hari believes that Lam Research is well-positioned to outperform the broader Wafer Fab Equipment market. His projection is based on the anticipation that Lam Research’s performance relative to its peers will likely accelerate over the coming quarters. This outlook supports the Buy rating, as it suggests a robust potential for growth and a favorable investment opportunity in LRCX shares.

In another report released on April 23, Stifel Nicolaus also maintained a Buy rating on the stock with a $1,050.00 price target.

Based on the recent corporate insider activity of 59 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LRCX in relation to earlier this year.

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Lam Research (LRCX) Company Description:

Founded in 1980, California-based Lam Research Corp. manufactures, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits worldwide. It offers thin film deposition, plasma etch, photoresist strip, and wafer cleaning.