BofA, Needham Cut Lam Research Targets After Supply Warning

BofA Securities and Needham cut their Lam Research price targets on Thursday, Oct. 22, while keeping Buy ratings, after the chip-equipment maker's December-quarter outlook included supply constraints.

BofA's target is now $345, down from $385. Needham set its target at $290, compared with $390 previously. The firms kept their ratings unchanged.

Lam forecast revenue of $8.60 billion for the quarter ending Dec. 27, with a $400 million range above or below that figure. It projected non-GAAP diluted earnings of $2.33 per share, plus or minus 15 cents. Chief Financial Officer Douglas Bettinger said the revenue outlook would have been “a bit higher” without near-term supply constraints the company is managing.

For the quarter ended Sept. 27, Lam posted revenue of $8.22 billion, up 22% from the previous quarter, and non-GAAP diluted earnings of $2.20 per share.

Lam put the wafer-fabrication equipment market in the mid-$150 billion range for 2026 and above $200 billion for 2027, extending its outlook for wafer equipment spending. The company also projected 2026 systems revenue growth of well over 40% and said customers had visibility through 2028. Lam described the industry as being in the early stages of a multiyear investment cycle.