Citi Maintains Buy Rating on Lam Research, Raises PT to $113

Citi Maintains Buy Rating on Lam Research, Raises PT to $113

Citi has maintained its "Buy" rating on Lam Research Corporation (NASDAQ:LRCX), while raising the price target to $113. This move comes following the company's strong Q4 2025 earnings report, which exceeded market expectations. The analysts at Citi highlighted Lam Research's robust financial performance and its position in the advanced semiconductor equipment market.

Lam Research reported a revenue of $5.17 billion for Q4 2025, surpassing the forecast of $4.99 billion. The company's earnings per share (EPS) of $1.33 also beat expectations, marking a significant earnings surprise. The company's gross margin hit a record high of 50.3%, and free cash flow reached $5.4 billion, accounting for 29% of revenue. These results demonstrate Lam Research's strong operational performance and strategic initiatives.

The analysts at Citi noted Lam Research's continued focus on advanced semiconductor technologies and innovations in gate-all-around technology. The company's increased headcount in research and development underscores its commitment to innovation and market leadership. Furthermore, the company's revenue guidance of $5.2 billion for the September quarter of fiscal year 2025 and its gross margin guidance of 50% ± 1% indicate a positive outlook for the future.

Despite the strong earnings report, Lam Research faces potential risks such as supply chain disruptions, market saturation in semiconductor equipment, and macroeconomic pressures. However, the company's strategic focus on advanced packaging and high-bandwidth memory, as well as its growing demand driven by AI, positions it well for future growth.

The stock's movement following the earnings announcement reflects positive investor sentiment, supported by the company's strong financial results and optimistic outlook. The current price is approaching its 52-week high of $102.59, indicating confidence in the company’s future growth.

References:
[1] https://finance.yahoo.com/news/lam-research-corporation-lrcx-reports-150917765.html
[2] https://uk.investing.com/news/transcripts/earnings-call-transcript-lam-research-q4-2025-beats-expectations-stock-rises-93CH-4192912