New York, Jan 10, 2026, 06:12 EST — The market has closed.
Lam Research (LRCX.O) shares jumped 8.7% on Friday, closing at $218.36. The boost came after Mizuho lifted its price target on the chip equipment maker to $220 from $200. The rally coincided with a wider upswing in semiconductor stocks that sent the PHLX chip index to a new record.
The move comes as investors wrestle with the speed of Federal Reserve rate cuts this year, while growth stocks sensitive to rates remain focused on inflation and labor numbers. Following Friday’s jobs report, traders lowered near-term easing bets, now anticipating a longer pause in cuts despite job growth falling short of expectations.
Analyst chatter is piling up around the stock. Cantor Fitzgerald’s C.J. Muse bumped his price target to $265 from $210, maintaining an “Overweight” rating — essentially a buy signal. He pointed to rising wafer fab equipment spending, the capital chipmakers pour into new tools and factories, as having potential to stretch through 2026-28. TipRanks
Mizuho maintained its Outperform rating, noting there’s still upside in semiconductors and chip equipment due to “attractive valuations.” However, it projects 2026 gains will be more muted compared to last year. The firm highlighted AI accelerators, wafer fab equipment, and memory as its top picks for 2026. TipRanks
The surge wasn’t just limited to Lam. Applied Materials (AMAT.O) jumped nearly 6.9% on Friday, with KLA (KLAC.O) climbing about 5.6%. The VanEck Semiconductor ETF (SMH) also pushed higher, gaining roughly 2.7%, according to the latest closing figures.
Lam hit a high of $219.59 on Friday, trading on heavy volume. This move snapped a two-day slide that had pushed the stock below its previous peak of around $210.45 from earlier in the week.
Lam is gearing up to release its December-quarter earnings and will host a call and webcast on Wednesday, Jan. 28, at 2:00 p.m. Pacific (5:00 p.m. Eastern).
But the situation works both ways. Following a rapid surge and several upward target revisions, Lam’s next step will probably depend on whether its earnings and guidance align with the market’s raised hopes on tool demand, margins, and client spending — all factors that can shift rapidly when chip cycles falter.
Traders are eyeing Tuesday’s U.S. consumer price index for December 2025 and the Federal Reserve’s policy meeting on Jan. 27-28. Both are expected to influence rate expectations and, in turn, valuations for big-cap tech and chip equipment stocks.
