New York, Jan 27, 2026, 11:34 (EST) — Regular session
- LRCX surged 6.7% early on, climbing briefly above $237
- Evercore ISI raises its target to $241, maintaining an Outperform rating
- Investors are gearing up for Lam’s earnings report on Wednesday, looking for new insight into chip capital expenditure trends
Lam Research shares jumped 6.7% to $237.70 in early trading Tuesday, hitting an intraday high of $237.88. The chip-equipment maker saw a swift move higher.
The move thrusts Lam (LRCX) back into the spotlight just a day before quarterly results, which typically influence wafer-fab equipment spending—the budgets chipmakers allocate for new gear and factory upgrades. Traders are now weighing if this rally will hold up once guidance drops.
Chip equipment stocks are gaining momentum as chipmakers gear up for heavier capital spending in 2026. TSMC, for example, plans to boost its budget by 37% to $56 billion. Industry insiders caution that customers are locked into lengthy tool cycles. “You’ve got a whole supply chain that’s betting the farm,” said TechInsights senior fellow Dan Hutcheson. 1
Evercore ISI raised its price target on Lam Research to $241 from $170, keeping its Outperform rating intact, an MT Newswires report showed on Monday. 2
Lam wasn’t the only winner. Applied Materials jumped 5.2%, KLA added 4.6%, and U.S.-listed ASML shares rose 3.5%. The Philadelphia Semiconductor index itself climbed roughly 2.8%. 3
Lam reports on Wednesday, with investors keen to catch any shift in management’s tone on orders from memory and foundry clients. Margins and the speed of tool deliveries will also draw scrutiny, especially as customers aim to expand AI-related capacity without falling into previous boom-bust traps.
But this kind of rally can reverse just as fast. If Lam’s forecast signals postponed orders, weaker memory spending, or new demand hits from U.S.-China export restrictions, the stock could shed those gains in no time.
Lam, headquartered in Fremont, California, produces equipment critical for semiconductor manufacturing, focusing on etch and deposition tools—machines that carve and deposit layers onto silicon wafers to build circuits. Investors keep a close eye on its earnings, as order trends often signal wider shifts in chip industry spending.
The next major event is Wednesday’s release and conference call scheduled for 5:00 p.m. ET (2:00 p.m. PT), according to the company’s investor relations site. Equipment investors will also be watching ASML’s earnings report that same day. 4
