Lam Research (lrcx): Bofa Raises Its Target by $150 as Chip Equipment Spending Heads Toward $250 Billion

Lam Research (LRCX): BofA Raises Its Target by $150 as Chip Equipment Spending Heads Toward $250 Billion Lam Research Corporation (NASDAQ:LRCX) is one of the best growth stocks to buy according to billionaire Dan Loeb.

On June 23, Bank of America raised its price target on Lam Research Corporation (NASDAQ:LRCX) to $480 from $330 while maintaining a Buy rating

Portogas D Ace/ Lead analyst Vivek Arya said the price target hike was necessary to align with the firm’s update to its semiconductor industry models. As part of the update, Arya and team identified five forces they believe will drive the next $1 trillion in chip industry revenues, which cover AI data centers, memory, semiconductor capital equipment, and reshoring, analog chips, and agentic CPU demand. A key factor in the price target upgrade was BofA’s revised forecast for wafer fabrication equipment (WFE) spending, the market in which Lam Research is a major player.

The firm now projects the WFE spending to reach $250 billion by 2028, up from an earlier estimate of $203 billion. The spending can climb to $292 billion by 2030, the analysts noted. From the perspective of the broader semiconductor industry, BofA now projects total chip sales of $2.7 trillion by 2030, up from a prior estimate of $2.3 trillion.