New York, Jan 6, 2026, 17:01 EST — After-hours
Lam Research Corp (LRCX.O) shares rose 6.2% to $206.96 in after-hours trading on Tuesday after Aletheia Capital analyst Warren Lau began coverage with a buy rating and a $260 price target. Lau wrote he expects the chip-equipment maker to “sustain its strong growth” as demand rises for tools tied to artificial intelligence (AI) and high-performance computing (HPC). The stock traded between $195.05 and $210.40 during the regular session. StreetInsider.com
The call landed as chip stocks surged on renewed AI optimism after Nvidia CEO Jensen Huang, speaking at the Consumer Electronics Show (CES) in Las Vegas, detailed a new storage technology. The PHLX Semiconductor Index hit an all-time high, up 2.75% on the day, and Argent Capital portfolio manager Jed Ellerbroek said he expects a “very strong earnings season for Big Tech,” a backdrop that can lift capital-spending forecasts that flow through to chip-tool orders. Reuters
That matters for Lam because its sales track chipmakers’ capital budgets, which can swing quickly when customers shift the timing of new fabs or upgrades. A fresh bullish initiation also raises the bar into earnings, as investors test whether the stock’s run is backed by a similar pace of bookings.
Lam sells etch and deposition equipment — tools that carve and coat silicon wafers — used to make logic and memory chips. It competes with Applied Materials and Japan’s Tokyo Electron in several product areas.
Aletheia’s $260 target implies roughly 26% upside from Tuesday’s last trade, based on the after-hours price. Traders will look for management’s take on demand tied to advanced 3D chip designs such as gate-all-around transistors, which wrap a transistor’s gate around the channel to improve control, and high-bandwidth memory used in AI servers.
But the rally leaves the shares sensitive to any sign that customers are pushing out spending plans, especially if memory markets soften or inventory builds return. Fresh tightening of U.S. export rules would also darken the outlook for tool shipments into China.
After Tuesday’s surge, $200 is the near-term line traders will watch; a slide below it would hand back a large part of the day’s gain. A move back above $210 would keep the focus on whether buyers are willing to add ahead of results.
Lam is expected to report results on Jan. 28 after the close, according to Yahoo Finance’s earnings calendar. Investors will key on bookings, gross margin and any change in the company’s outlook for 2026 customer spending.
