New York, Jan 13, 2026, 18:12 EST — After-hours
- Lam Research shares dropped 2.7% during regular trading but nudged up slightly in after-hours.
- This week, Bank of America and Bernstein raised their price targets in separate notes
- Investors are eyeing Lam’s earnings call on January 28, covering the December quarter
Lam Research (LRCX) shares dropped 2.7% on Tuesday but edged higher in after-hours trading. Bank of America and Bernstein raised their price targets for the chipmaking equipment company. The stock finished the day at $214.38 and gained roughly 0.6% after the close.
The retreat followed Lam’s shares hitting a 52-week high just a day earlier, leaving the stock trailing behind major rivals as the broader market dipped. Applied Materials slipped 0.8%, while the S&P 500 edged down 0.2%, according to MarketWatch data.
Why it matters now: the stock has surged through late January, prompting investors to question if the rally is outpacing the upcoming order cycle. Zacks noted Lam’s gains are fueled by strength in 3D DRAM and advanced packaging but cautioned that spending on mature chip nodes might remain weak, with ongoing U.S.-China trade tensions posing a threat.
Tuesday’s trading was volatile. Lam kicked off at $219.42, hitting a peak of $222.40 before dipping to $213.44. Roughly 12.7 million shares exchanged hands, per market data.
Bank of America’s analyst Vivek Arya bumped the price target to $245 from $195 while maintaining a buy rating, TheFly reports. The upgrade reflects a “stronger multi-year demand outlook” and the chance for increased free cash flow as the cycle shifts. TipRanks
Bernstein raised its price target to $225 from $175 and kept an outperform rating. The firm pointed to a possible “NAND upgrade cycle starting,” signaling renewed spending on flash memory production, which often drives demand for new etch and deposition equipment. TipRanks
Lam is a key player in wafer fabrication equipment, focusing on deposition and etch processes — applying thin layers to chips and then selectively removing material to create circuits. Its tools see heavy use in memory chip manufacturing, making the company’s performance closely tied to fluctuations in DRAM and NAND investments.
Lam’s upcoming earnings call for the December 2025 quarter is set for Jan. 28. Investors will zero in on management’s take on memory spending, potential momentum in a NAND upgrade cycle, and whether the guidance backs the recent spike in targets.
That said, the situation is double-edged. Any sign of caution in orders, slowing customer spending, or margin pressure could weigh on a stock hovering near its recent peaks.
Looking ahead to the next session, the key question is if the after-hours bounce sticks and if additional brokers update their targets. The bigger test arrives Jan. 28, when Lam releases its outlook amid a market that’s already factoring in stronger demand.
