NEW YORK, Jan 7, 2026, 10:51 EST — Regular session
- Lam Research shares down about 2.5% in morning trading after a sharp two-day rise
- Aletheia starts coverage at Buy with a $260 price target
- Investors turn to the next earnings window for clues on chipmaking spend
Shares of Lam Research Corp (LRCX) fell about 2.5% to $201.86 in morning trading on Wednesday, giving back part of a two-day rally in semiconductor equipment stocks.
The timing matters because the trade in chip gear has turned fast this week, with investors leaning into names tied to artificial-intelligence-related chip buildouts as CES kicks off in Las Vegas. The group has also started to draw fresh analyst attention ahead of earnings season.
Aletheia Capital on Tuesday initiated coverage of Lam with a Buy rating and a $260 price target. Analyst Warren Lau wrote, “We initiate coverage on Lam Research (LRCX) with a Buy and a TP of $260,” pointing to what he called rising demand for Lam’s etch and deposition tools used to build advanced chips. A price target is a broker’s estimate of where a stock could trade over the next year. StreetInsider.com
The move was not isolated. Applied Materials fell about 1.1%, KLA slid about 2.1% and ASML was down about 1.1% on Wednesday, while Nvidia shares rose about 1.5%.
Nvidia helped keep the AI theme front and center after CEO Jensen Huang used his CES keynote to outline the company’s next “Vera Rubin” platform and said the next generation of chips is in “full production.” Reuters
Lam has jumped 5.2% on Monday and 6.3% on Tuesday, touching $210.45 at Tuesday’s session high before easing on Wednesday. The stock hit an intraday low of $200.04 on Wednesday, according to pricing data.
But the downside case stays simple. If foundries and memory makers pull back on capital spending, orders can soften quickly and the equipment names often de-rate, even after upbeat calls.
Investors are now watching for the next earnings update for clues on customer spending plans and margins. Market calendars including MarketWatch and Yahoo Finance list Jan. 28 for Lam’s next report, though the company’s investor events page currently shows no upcoming event listing.
