New York, Jan 22, 2026, 17:42 EST — After-hours
- Lam Research shares dipped Thursday, retreating from the 52-week peak they hit just the day before
- Ahead of Lam’s Jan. 28 quarterly earnings, Citi and Deutsche Bank both bumped up their price targets this week
- Traders are focusing on chip-equipment spending forecasts for 2026, not just this quarter’s figures
Shares of Lam Research Corp fell 3.4% Thursday, closing at $220.70. During the day, the stock fluctuated between $238.20 and $219.39, and it held close to the closing price in after-hours trading.
The drop comes just a week ahead of Lam’s December-quarter earnings release on Jan. 28. Investors will focus on what management reveals about customer spending outlook for 2026, particularly around memory and advanced logic chips. 1
Citigroup boosted its price target for Lam to $265 from $190, maintaining a Buy rating. The firm described Lam as being in a “Phase 2 upcycle,” driven by wafer fab equipment spending edging closer to Citi’s bullish forecast. 2
Deutsche Bank’s Melissa Weathers bumped her price target on Lam to $260 from $195, maintaining a Buy rating. She anticipates the company will deliver results “solidly above Street” expectations shortly. 3
Lam took a notable hit on a day when U.S. stocks mostly rose—the S&P 500 gained 0.6%—yet the chip-equipment firm ended roughly 5% below its 52-week peak of $232.90, reached just Wednesday. Applied Materials slid around 2% during the session. Lam’s trading volume hovered near its recent average, according to MarketWatch data. 4
This group’s back-and-forth is nothing new. Targets jump up fast when analysts raise them, but then stocks swing wildly over minor details — order timing, who the customers are, or any sign that robust spending might be slowing down.
Lam supplies tools that deposit and etch thin layers on wafers. Demand usually tracks major capital spending at chipmakers, so the outlook commentary matters as much as the quarter’s revenue and profit.
The setup works two ways. A slip in customer capex or stricter export controls limiting shipments to China could disrupt forecasts — a risk peers have flagged as Washington ramps up restrictions. 5
Investors are keen on Lam’s take on backlog and shipments, plus how much of 2026 spending is just being pulled forward rather than actually growing. Margin discussions will be crucial, particularly if the more expensive tools and services are carrying a bigger load.
Lam’s earnings report and conference call are set for Jan. 28. Investors will zero in on the forward guidance, which will probably drive the initial market response more than the headline figures.
