New York, Jan 6, 2026, 11:43 EST — Regular session
- LRCX up about 6.9% at $208.15 in morning trade
- Aletheia Capital initiates at Buy with a $260 price target
- Investors eye Jan. 28 results for demand and 2026 spending signals
Shares of Lam Research rose about 6.9% to $208.15 on Tuesday after Aletheia Capital analyst Warren Lau began coverage with a buy rating and a $260 price target, saying new products could “further propel” the stock. The shares touched an intraday high of $208.55. StreetInsider.com
The move matters because chip-equipment stocks are back in focus early in 2026 as investors bet the build-out of artificial intelligence (AI) data centers will keep capital spending on chip factories elevated. Lam makes etch and deposition tools — equipment used to carve and stack materials on silicon wafers during chip production.
On Monday, the PHLX Semiconductor Index rose about 1.7% and equipment makers were among the strongest performers, with Lam, Applied Materials and KLA each up at least 6%, MarketWatch reported. “Investors realize the great data-center build-out is still not reflected across all of the stocks that are impacted,” D.A. Davidson head of technology research Gil Luria told the outlet, pointing to a 22% rise in fourth-quarter revenue at Foxconn, a partner to Nvidia and Apple. MarketWatch
AI headlines also kept traders’ attention on CES in Las Vegas, where Nvidia CEO Jensen Huang rolled out new chips and AI models aimed at autonomous vehicles. Nvidia said Huang’s CES presentation ran on Monday afternoon, with the event scheduled through Jan. 9. Axios+1
Peers climbed in sympathy on Tuesday: Applied Materials was up about 4.1% and KLA rose roughly 3.6%, while the iShares Semiconductor ETF gained about 2.8%.
The next hard catalyst for Lam is its quarterly report, due Jan. 28 after the close, according to Yahoo Finance’s earnings calendar. Investors will listen for guidance on wafer fab equipment (WFE) spending — the tools used to make chips — and for any change in orders tied to advanced memory and foundry demand. Yahoo Finance
But the rally has pushed expectations higher across the semiconductor equipment group. Any hint that customers are trimming capital budgets, or that restrictions on tool sales bite harder, could pressure order growth and squeeze margins.
For now, traders are watching CES read-throughs and positioning ahead of earnings, with Lam’s Jan. 28 update the next checkpoint for LRCX.
