New York, Jan 22, 2026, 11:35 (ET) — Regular session
- Shares of Lam Research dropped roughly 2.9% by midday, even after climbing to an early peak of $238.20
- Citi bumped its price target up to $265, while Deutsche Bank raised theirs to $260. Both firms maintained their Buy ratings.
- Investors are turning their attention to Lam’s quarterly results on January 28 and its guidance on chip-factory spending ahead.
Lam Research shares slipped 2.9% to $221.88 on Thursday, erasing gains from an earlier surge up to $238.20. The semiconductor equipment company’s stock closed $6.52 lower than Wednesday.
The broader chip tools group stayed steady despite the pullback. The VanEck Semiconductor ETF climbed around 0.7%, and the iShares Semiconductor ETF rose about 0.5%. Applied Materials dropped roughly 1%, KLA barely moved, and ASML gained close to 1.7%.
Why it matters now: Lam’s shares have hovered near recent peaks ahead of a wave of analyst reports and an earnings announcement seen as a key test for the stock. On Wednesday, the stock closed at $228.39—just under 1% shy of its previous 52-week high—while trading volume surged.
Citi lifted its price target on Lam to $265 from $190 on Thursday, maintaining a Buy rating. According to a note cited by TheFly, the bank views Lam as entering a “Phase 2 upcycle,” with wafer fab equipment spending—essentially the tools chipmakers use to produce semiconductors—moving toward Citi’s bullish $126 billion forecast for 2026. TipRanks
Just a day before, Deutsche Bank’s Melissa Weathers raised her price target to $260 from $195, maintaining a Buy rating. She noted the firm had revised its model ahead of earnings and now expects Lam to deliver results “solidly above Street,” referring to consensus analyst estimates. TipRanks
Not all analysts agree. On Thursday, New Street bumped its price target up to $195 from $140 but stuck with a Neutral rating, MT Newswires reports.
Lam, headquartered in Fremont, California, offers etch and deposition equipment essential for chip manufacturing, plus services for its installed machines. The stock’s sudden intraday swing highlights how, as earnings approach, investors are betting not only on current results but also on how 2026 spending will unfold at major chipmakers.
The risk is clear: even solid results might not satisfy investors if the company’s forecast disappoints a market hungry for “upcycle” talk. Signs of delayed orders, pricing pressure, or weaker demand in memory gear could swiftly weigh on the stock.
Lam plans to release its December-quarter earnings on Jan. 28, with a conference call set for 5:00 p.m. Eastern, the company announced.
Traders are zeroing in on what comes next. All eyes will be on management’s insights into wafer-fab spending, the timing of customer deliveries, and whether the recent upbeat analyst forecasts actually make it into the guidance — extending beyond the upcoming quarter’s results.
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