New York, Jan 15, 2026, 17:24 EST — After-hours
Lam Research shares climbed 4.2% to $217.47 in after-hours trading Thursday, buoyed by strength in semiconductor equipment stocks and a flurry of broker upgrades that thrust the company back into the spotlight.
The picture shifted quickly after Taiwan Semiconductor Manufacturing Co revealed higher spending plans for 2026, a key indicator for chipmaking equipment. CEO C.C. Wei warned of risks despite the bold investment push: “We’re also very nervous about it. If we did not do it carefully, that would be a disaster for TSMC.” 1
For Lam, the stakes are high since its revenue depends heavily on wafer fabrication equipment—the gear used to produce chips—and TSMC’s spending plans often drive the entire supply chain. Reuters reported that TSMC’s projected $52 billion-$56 billion capex for 2026 tops the $46 billion analysts surveyed by Visible Alpha had forecast. Aureus investor Han Dieperink weighed in: “The market has underestimated again how large is the demand for AI.” 2
It wasn’t just Lam leading the charge. Applied Materials jumped 5.7% to $319.08, KLA surged 7.7% to $1,544.96, and U.S.-listed TSMC shares gained 4.4%, closing at $341.64.
Lam entered Thursday after suffering recent losses. The stock dropped 2.6% on Wednesday, finishing at $208.79, lagging behind several competitors during a down day for the broader market, according to MarketWatch data. 3
Wells Fargo turned bullish on Thursday, raising its rating on Lam from “Equal Weight” to “Overweight” and hiking the price target sharply to $250 from $145, according to an Investing.com report. Analyst Joseph Quatrochi cited strong memory-related demand and increased capacity as key drivers supporting Lam’s systems business.
RBC Capital kicked off coverage with an “Outperform” rating and set a $260 price target. The firm highlighted potential “further upward bias” in wafer-fab equipment spending over the next two years, pointing to a recovery in NAND spending alongside robust demand in advanced packaging and high-bandwidth memory. 4
Stifel boosted its price target on Lam to $250 from $160, maintaining a “Buy” rating. The firm cited bullish recent field checks and raised its 2026 growth forecast for industry wafer-fab equipment to 10%-15%, up from 7%-8%. 5
Morgan Stanley raised its price target to $211 from $158 but maintained an “Equal Weight” rating. The firm anticipates a “sizable” beat in the March quarter alongside broader strength in end-markets, The Fly reports. 6
Barclays’ Tom O’Malley bumped his price target to $195 from $142, keeping an “Equal Weight” rating. He pointed to the stock’s close ties to the AI trend as a key driver for picks, but cautioned the year might get bogged down in debates over how much of the tech can really be put to use. 7
Policy developments also caught attention. The United States and Taiwan sealed a trade deal centered on semiconductors, featuring tariff reductions on numerous Taiwanese exports alongside investment pledges. Reuters noted that ramped-up U.S. chip manufacturing could boost orders for suppliers like Lam Research. 8
The upside still depends heavily on conversion — large budgets don’t guarantee tool orders right away. Timing can slip if fabs face delays, customers hold back, or policy changes dampen demand. If memory spending stays uneven, Lam will notice it fast.
Lam’s earnings call for the December quarter is set for Jan. 28 at 2:00 p.m. PST. Investors will be keen on any insights about orders and 2026 spending plans. Note that markets will be closed on Monday, Jan. 19, for Martin Luther King Jr. Day, cutting the next trading week short and packing the schedule. 9
