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Lam Research has ripped higher this year, and Deutsche Bank thinks further gains are on the horizon. The bank upgraded the company, which makes equipment necessary for the fabrication of semiconductors, to buy from hold. Deutsche also raised its price target to $150 from $100, signaling upside of nearly 17% from Friday’s close. Lam Research has already soared more than 77% in 2025, but analyst Melissa Weathers thinks the stock can build on its momentum as the outlook for wafer fabrication equipment improves. LRCX YTD mountain LRCX year to date “We have updated our WFE model to reflect positive dynamics impacting the semicap space over the last 90 days,” Weathers said in a note to clients. “The primary drivers of our improved outlook are more favorable memory supply-demand conditions, momentum at second-tier foundries, and an updated outlook on China.” “All told, we now see WFE growing +6%/+5% y/y in 2025/2026, above our prior estimates of +3%/+4%,” she noted. Weathers added that the stock’s valuation isn’t exorbitant relative to peers. While its 26.8 forward multiple is more than 25% above a five-year median of 19.8, rivals Applied Materials and KLA also trade a big premiums to historical averages, the analyst said. Lam Research shares rose more than 2% in the premarket following the upgrade. The rating change puts Weathers in the majority of analysts covering Lam. Of the 32 analysts covering it, 23 rate it a buy or strong buy, LSEG data shows. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
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