New York, Jan 12, 2026, 10:25 (EST) — Regular session underway
- Shares of Lam Research ticked up following Susquehanna’s boost to its price target.
- Chip-tool stocks showed a mixed picture as Wall Street dipped amid worries over Fed independence.
- Attention now turns to Lam’s late-January results for clues on chip-factory investment and its China exposure.
Lam Research shares inched up 0.3% to $219.05 on Monday after Susquehanna lifted its price target for the chip-equipment giant to $250, maintaining a Positive rating. Analyst Mehdi Hosseini cited channel checks indicating the industry is gearing up for roughly $120 billion in wafer-fab equipment spending, with projections exceeding $150 billion over the longer term. (TipRanks)
Timing is crucial. Investors are returning to semiconductor capital equipment—the expensive machinery chipmakers snap up to grow their fabs—betting that AI data centers are accelerating demand.
Wall Street’s major indexes kicked off lower amid fresh doubts about the Federal Reserve’s independence, stirring volatility in rate-sensitive tech stocks. The market is clearly unsettled. (Reuters)
Bernstein analyst Stacy Rasgon said the firm finds “little reason to change our broad perspective,” sticking with companies it views as best placed for long-term AI investment. The firm plans to “own semicap even as valuations reach nosebleed levels,” maintaining Outperform ratings on Lam Research and Applied Materials. (Investing)
Applied Materials climbed around 2%, and KLA added about 0.6%, but Dutch chip-equipment maker ASML dipped a bit. A semiconductor ETF tracking the sector saw little movement.
Lam, headquartered in Fremont, California, provides tools for etching, deposition, and cleaning—key processes chipmakers ramp up spending on as they move to smaller, more intricate designs. Its earnings also fluctuate with memory cycles, since customers typically slash spending quickly when prices drop.
The broader industry remains focused on hefty figures. In December, SEMI, an industry group, projected global chipmaking equipment sales to jump around 9% to $126 billion in 2026, then rise another 7.3% in 2027 as chipmakers ramp up capacity for AI-focused logic and memory. (Reuters)
The risk here is blunt. Reuters revealed late last month that China now demands chipmakers use at least 50% domestically produced equipment when expanding capacity. This mandate could pressure foreign suppliers, even if tools remain accessible. (Reuters)
Lam’s shares entered this week on a strong note, soaring 8.7% Friday after Mizuho bumped its price target up to $220 from $200. (Reuters)
Lam’s next major event is its quarterly earnings call on Jan. 28, scheduled for after the market close. Investors will focus on 2026 spending outlooks and watch closely for hints about China’s demand and any regulatory impacts. (Lamresearch)
