Citi raises Lam Research’s price target by $135, citing a multi-year boom in semiconductor manufacturing spending driven by AI demand.
Citi increased its price target for Lam Research (LRCX) to $450 from $315, reflecting updated forecasts for wafer fabrication equipment (WFE) spending. The firm projects WFE spending to reach $145 billion in 2026, rising to $200 billion in 2027 and exceeding $250 billion by 2028.
The revision aligns with a broader trend of rising investment in chip manufacturing, fueled by structural demand for NAND flash memory driven by agentic AI. Analysts noted a growing gap between AI system memory requirements and current supply.
Lam Research, a key player in semiconductor equipment, stands to benefit from this sustained investment cycle, with Citi’s targets based on 2028 earnings potential.