FREMONT, California, May 5, 2026, 10:01 PDT
- Lam Research jumped over 7% during Tuesday’s session, pushing chip-equipment names higher again.
- Seaport Global just kicked off its coverage with a Buy and slapped on a $300 price target; the announcement follows that move.
- China is where the squeeze is most acute: Lam pulled in 34% of its March-quarter sales from the country, with U.S. export restrictions growing stricter.
Lam Research Corp surged more than 7% on Tuesday, pushing to a new record as buyers piled into chip-equipment names linked to the artificial intelligence wave and rising appetite for memory. Shares last changed hands at $277.71, up $19.14, following an earlier run to $279.93.
Timing is key here. Just a day earlier, SK Hynix shares set a fresh record in Seoul, buoyed by signals from major U.S. tech firms ramping up AI data center investments—a trend that’s stoking appetite for memory chips and the factory equipment behind them.
Lam is right at the center of this trade. The company manufactures wafer-fabrication equipment—machines that play a key role in building chips on silicon wafers—including etching tools, used for cutting intricate circuit patterns into chip layers. Reuters calls Lam a global supplier of wafer-fabrication equipment and services to semiconductor manufacturers.
Another boost for the stock: Seaport Global started coverage on Lam, tagging it with a Buy and a $300 target price this Tuesday. The Benzinga data shows Seaport’s call came after both JPMorgan and RBC Capital raised their Lam price targets back on April 23.
Lam had set a firmer foundation for investors earlier. Last month, the company reported March-quarter revenue climbing to $5.84 billion, with non-GAAP diluted earnings coming in at $1.47 per share. “AI-driven demand reshapes the semiconductor industry,” Chief Executive Tim Archer said. Lam Research Newsroom
The company put out a June-quarter revenue outlook at $6.60 billion, give or take $400 million, and sees non-GAAP earnings landing at $1.65 a share, plus or minus 15 cents. That left investors zeroed in on whether memory and logic-chip producers plan to keep ramping up capacity for the rest of the year.
Peers didn’t sit still. Applied Materials jumped roughly 5.2%, with KLA up 2.5% on Tuesday. The rally spread across U.S. chip-equipment stocks, not just Lam.
KLA projected stronger-than-expected revenue for the coming quarter last week, fueled by AI-related demand. Still, the stock dipped after hours, with hopes for a blowout quarter already priced in. “Investors were selling off anything less than massive beats” because valuations are stretched, CFRA’s Brooks Idlet told Reuters. Reuters
China is the big swing factor here. According to Lam, the country pulled in 34% of revenue last quarter—more than anywhere else. Korea and Taiwan each made up 23%. That’s why tweaks to export regulations aren’t just noise for Lam.
Last week, Reuters said the U.S. Commerce Department told several chip-equipment makers to stop shipping certain tools to China’s Hua Hong. Lam, Applied Materials and KLA reportedly received the notices, according to people familiar with the matter. Chris McGuire of the Council on Foreign Relations described the move as “an overdue and welcome first step,” though he argued it won’t matter unless it also targets overseas subsidiaries. Reuters
Right now, Lam is seen as a pure play on the AI infrastructure boom—beyond just the chips inside data centers. But that perception swings both ways. If hyperscalers pull back on spending, memory prices soften, or export rules bite harder, this stock—already reflecting a rosy growth outlook—could be in for a test.
