New York, Jan 24, 2026, 15:03 EST — Market closed.
- Shares of Lam Research dropped 1.3% to $217.94 on Friday, marking their second consecutive day of losses.
- Citi raised its price target to $265, highlighting a “Phase 2 upcycle” in chip tools.
- Lam’s earnings and call on Jan. 28, plus the Fed’s rate decision, are the next key events for investors.
Lam Research shares dipped 1.3% to close at $217.94 on Friday. Investors are now looking ahead to the chip-equipment maker’s upcoming earnings report, shifting attention away from the weekend’s trading action.
That retreat is crucial as Lam prepares to report December-quarter results on Jan. 28. The stock has hovered near its recent peaks following a wave of analyst upgrades. The upcoming earnings and any clues on customer spending will be the real test for this recent burst of optimism.
The wider picture is cluttered as well. This week’s slate includes a packed U.S. earnings calendar and a Federal Reserve policy verdict, both key to shaping risk appetite—especially for tech and semiconductor stocks.
On Friday, Lam lagged behind despite the S&P 500 inching higher. Applied Materials rose 1.1%, and Advanced Micro Devices climbed 2.4%, according to MarketWatch data. Lam, however, ended roughly 7.7% shy of the 52-week high it reached just a day earlier.
Thursday kicked off the two-day slide, as Lam dropped roughly 3.4% despite a robust broader market that pushed major indexes higher, a report from Longbridge noted. Friday’s volume clocked in near 10 million shares, hovering around recent norms.
Citi’s recent note stands out as a key driver over the last two days. The bank hiked its price target on Lam from $190 to $265, maintaining a Buy rating ahead of the January 28 report. Citi described the group as entering a “Phase 2 upcycle,” citing a bullish scenario where wafer fabrication equipment spending could hit $126 billion by 2026. TipRanks
Not all firms share the same optimism. New Street raised its price target to $195 from $140 but kept a neutral rating, highlighting that price targets haven’t all shifted upward and some analysts view upside as limited after the recent rally.
Lam has scheduled its quarterly earnings call and webcast for Wednesday, Jan. 28, beginning at 2:00 p.m. Pacific (5:00 p.m. Eastern).
Investors will be sizing up the results against Lam’s earlier guidance. Back in October, the company projected revenue around $5.20 billion, with a $300 million margin either way, for the quarter ending Dec. 28. Adjusted earnings were expected to land near $1.15 per share, give or take 10 cents.
The week’s key macro event arrives Wednesday. Reuters reported that investors broadly anticipate the Fed will keep rates unchanged after its two-day meeting. Strategists caution that with valuations stretched, “the earnings bar had better be met.” Reuters
Still, the situation is a double-edged sword for Lam. Even a slight sign that tool demand is slowing or that memory and foundry clients are pulling back on spending could drag down a stock that recently hit a new peak. On top of that, a tougher Fed stance would weigh heavily on high-multiple tech shares.
Lam shareholders face their next big moment on Jan. 28, when results drop after the close and the 5 p.m. Eastern call kicks off. Traders will zero in on any guidance or order updates, which could ripple out to peers like Applied Materials and KLA once U.S. markets open Monday.
