New York, January 16, 2026, 18:38 (EST) — After-hours trading
- Shares of Lam Research climbed 2.5% in late Friday trading, closing near $223
- Wells Fargo raised its rating on the stock, while RBC initiated coverage with a bullish outlook
- Traders are eyeing chipmaker spending plans as Lam prepares to report late January results
Lam Research Corporation’s stock gained 2.5% in after-hours trading Friday, closing at $222.96. During the session, shares fluctuated between $217.85 and $224.70.
The chip-tool sector has seen a volatile two-day rollercoaster, and Lam remains at the heart of the ongoing discussion about the duration of the next factory buildout.
Investors are zeroing in on analyst forecasts and spending cues from major chipmakers to gauge the next phase of demand for “semi-cap” stocks — the shorthand for semiconductor capital equipment manufacturers.
Wells Fargo bumped Lam to Overweight from Equal Weight, lifting its price target sharply to $250 from $145. The firm highlighted demand signals showing “tightening” supply-and-demand dynamics in logic and memory chips, which could drive quicker wafer fab equipment spending in 2027. 1
RBC Capital kicked off coverage with an Outperform rating and set a $260 price target. The firm noted that valuations have already priced in some positives “to an extent,” but still sees upside from increased wafer fab equipment spending over the next two years. They highlighted a rebound in NAND spending and robust demand for CoWoS and HBM — advanced chip packaging and high-bandwidth memory critical for AI servers. 2
Lam and other chip-tool stocks jumped Thursday following Taiwan Semiconductor Manufacturing Co’s earnings, which triggered a wide semiconductor rally. Lam, Applied Materials, and KLA each climbed over 7% that day. 3
TSMC’s optimistic forecast carries weight, shaping tool demand expectations. The company projects capital spending between $52 billion and $56 billion in 2026, with revenue set to climb nearly 30%. This outlook boosts order prospects for suppliers like ASML and U.S. toolmakers. 4
Barclays analyst Tom O’Malley raised his price target to $195 from $142 but stuck with an Equal Weight rating. He pointed to “proximity” to the artificial intelligence theme as the main factor likely to influence semicap stocks’ performance in 2026. 5
Lam supplies deposition and etch equipment vital for constructing chip circuits layer by layer. Its orders usually track customer schedules for new fabs and upgrades, causing the stock to react sharply to any changes in spending forecasts.
The risk lies in the market pricing in heavy expectations for “next year” and even “the year after.” Should memory demand ease up, factory ramp-ups falter, or customers delay spending into later quarters, those optimistic upgrades could unravel fast.
Lam’s quarterly conference call and webcast is set for Wednesday, January 28, at 2:00 p.m. Pacific time (5:00 p.m. Eastern). Investors will be watching closely for updates on tool demand and customer spending trends heading into 2026. 6
