New York, Jan 16, 2026, 11:55 AM EST — Regular session
- Lam Research shares climbed roughly 3% in late morning trading
- Wells Fargo upgraded its rating and bumped the price target up to $250
- TSMC’s new spending plan kept chip-equipment stocks under the spotlight
Lam Research shares climbed 3.3% to $224.57 in late morning trading, extending gains across chip-equipment stocks following positive cues from major clients and a new upgrade from Wall Street.
The stock has tracked chipmakers’ capital spending closely, with investors quick to jump on any sign of increased tool orders in 2026. This week saw a boost from Taiwan Semiconductor Manufacturing Co raising its spending forecast and offering a more positive outlook on memory demand.
Why it matters now: Lam supplies wafer fabrication equipment—the costly, high-tech machines chipmakers rely on to etch and deposit materials onto silicon wafers. When major chipmakers boost their capital spending, that cash typically funnels directly into tool orders, pushing stock prices ahead of what quarterly reports reveal.
Wells Fargo bumped Lam’s rating from Equal Weight to Overweight and lifted its price target sharply to $250 from $145. Analyst Joseph Quatrochi pointed to NAND upgrades, growing use of “backside power delivery,” and advanced packaging linked to high-bandwidth memory as key growth drivers. (Investing)
TSMC on Thursday projected a nearly 30% jump in 2026 revenue, measured in U.S. dollars, and planned capital expenditures between $52 billion and $56 billion. Traders quickly linked this boost to the chipmaker’s equipment suppliers. CEO C.C. Wei warned the company remains cautious, admitting it’s “very nervous” about the size of the planned spending. (Reuters)
TSMC’s earnings report highlighted steady demand for its top-tier chips. Finance chief Wendell Huang pointed to “strong demand” for the company’s most advanced process technologies as a key driver. (TSMC)
Spending projections lifted the entire sector. On Thursday, Lam climbed, matching gains from fellow chip-equipment firms Applied Materials and KLA, both posting solid advances. (Barron’s)
The trade remains crowded. Much of the optimism hinges on memory tightening and AI-driven spending staying strong throughout the year. But equipment orders can drop fast if customers hit the brakes on builds or delay deliveries.
Investors are shifting their focus from headlines to company guidance. Lam is set to release its results on Jan. 28. Traders will zero in on management’s take on foundry and memory spending, plus whether demand for tools is expanding past a small group of AI-focused clients. (Lam Research Investor Relations)
