New York, January 20, 2026, 11:23 (EST) — Regular session
- Lam Research holds firm following Winbond’s announcement of a T$6.81 billion equipment order from a Lam subsidiary
- Needham raises its price target for Lam Research to $250
- Traders are eyeing Lam’s Jan. 28 earnings for new clues on chip-factory spending trends
Lam Research shares held steady Tuesday following Taiwan’s Winbond Electronics announcement that it will purchase machinery equipment from Lam Research International worth T$6.81 billion ($215.66 million). Needham also bumped its price target up sharply, from $160 to $250. 1
Timing is crucial. Since the start of the year, chip-equipment shares have been volatile, with investors eager for clear signs on whether factory spending is genuinely rising or merely accelerating orders ahead of schedule.
These firms operate near the start of the supply chain. “Wafer fab equipment” refers to the machines used to produce chips in factories, and their orders often fluctuate with customer capital expenditure plans and shifts in policy.
By 11:08 a.m. EST, Lam Research was barely changed, edging up 0.02% to $223.01, bouncing between a low of $215.00 and a high near $226.08. Applied Materials slipped 2.5%, while KLA dipped 2.7% during that same stretch.
The broader market weighed on it. Wall Street dropped to its lowest point in nearly three weeks after President Donald Trump threatened new tariffs on multiple European nations amid a Greenland dispute. A strategist noted the market was reacting sharply to the headlines. 2
The Winbond deal provides another signal of Asia-driven demand. Traders often treat these reported tool purchases as a quick snapshot of build activity, particularly in memory and specialty chips, where spending can shift rapidly.
Needham’s boost to its target price pushed Lam back among the “held up better than peers” group amid a tough session for semicap stocks. The new target hangs significantly above Tuesday’s trading levels.
The group bounced back last week following Taiwan Semiconductor Manufacturing Co’s earnings and capital expenditure forecast, which boosted confidence in chip-factory investments. 3
The setup remains messy. One big order won’t necessarily spark momentum, and any tariff fight flare-ups could unsettle high-multiple tech stocks and hold back customer spending.
Lam’s quarterly earnings call is scheduled for Jan. 28. Investors will be digging for details on demand trends, customer spending patterns, and whether order volumes are steady heading into the next quarter. 4
