New York, January 11, 2026, 14:32 ET — The market is now closed.
Shares of Lam Research (LRCX) surged 8.7% on Friday following Mizuho’s boost of its price target to $220 from $200. The PHLX semiconductor index climbed 2.7%, hitting a new high. “Investors are getting granular and picking the winners and losers,” said Zachary Hill, head of portfolio management at Horizon Investments. 1
Lam sees the burst as significant since equipment manufacturers operate upstream in the semiconductor cycle. When chipmakers boost spending, orders can jump sharply; when they hold back, tool stocks tend to react quickly.
Next week, the spotlight turns to major U.S. banks starting their fourth-quarter earnings reports, alongside December’s consumer price index (CPI) release on Tuesday—an inflation gauge closely watched ahead of the Fed’s late-January meeting. “It just seems a little too quiet,” said Michael Arone, chief investment strategist at State Street Investment Management. 2
Mizuho maintained its Outperform rating on Lam while raising the price target. The firm continues to see upside in semiconductor capital equipment for 2026 based on valuations, though it anticipates growth will slow after 2025. 3
Lam wasn’t the only chip-tool stock to surge Friday: Applied Materials climbed 6.9%, KLA jumped 5.6%, and ASML increased 6.7%.
Lam exchanged roughly 16.8 million shares Friday, hitting a peak of $219.42 during the session, while the low settled at $202, according to market data.
Lam supplies tools for depositing and etching layers on silicon wafers, a key part of chip manufacturing. Investors view the stock as a gauge for capital spending at memory producers and logic foundries.
Still, Lam’s steep rally exposes it to risk if chipmakers dial back spending, particularly in memory, where budgets often fluctuate quarterly. Trade policy remains a cloud, too, as companies prepare for a Supreme Court decision on the legality of President Donald Trump’s global tariffs. 4
Following Friday’s sharp spike, investors will be eyeing if the stock can maintain its momentum when U.S. markets open Monday. Quick rallies often invite profit-taking, especially if interest rates or economic data catch the AI trade off guard.
Lam plans to hold its December-quarter earnings call on Jan. 28 at 2 p.m. Pacific time (5 p.m. ET), right after the U.S. markets close. Investors are keen to hear what management says about customer spending and the flow of new tool orders. 5
