Lam Research (LRCX): A Strong Buy in a Resurging Semiconductor Cycle

The semiconductor industry is on the cusp of a powerful upcycle, and Lam Research (NASDAQ:LRCX) is positioning itself as a clear winner. With Cantor Fitzgerald recently raising its price target to $120 from $115, the firm isn’t just betting on Lam’s near-term momentum—it’s staking its reputation on the company’s ability to outperform in a sector poised for explosive demand [1]. This upgrade, coupled with a 23.7% year-over-year revenue surge and a strategic pivot toward high-growth Foundry and Logic segments, makes LRCX a compelling case for investors seeking exposure to the next phase of the chipmaking boom.

Strategic Rebalancing: Foundry and Logic Drive the Future

Lam Research’s traditional strength in memory manufacturing has long been a cornerstone of its business, but the company is now leaning heavily into Foundry and Logic segments—areas that are becoming the new engines of growth in the semiconductor cycle [2]. These segments, which cater to advanced chip designs for AI, data centers, and next-gen computing, are seeing unprecedented demand. Cantor Fitzgerald’s analysts note that Lam’s new product platforms, including its Endura and Centura systems, are already gaining traction with leading-edge customers, giving the company a first-mover advantage [3]. This shift isn’t just tactical—it’s a long-term bet on where the industry is headed.

Financials That Justify the Optimism

Lam’s financial performance over the past year has been nothing short of stellar. Revenue growth of 23.7% [4] outpaces the industry average, and management’s confidence in sustaining this momentum through 2026 is backed by concrete metrics. Cantor Fitzgerald projects 2026 earnings per share (EPS) of $6.00, a figure that exceeds the current consensus estimate of $4.74 [5]. This gap suggests that the market is underestimating Lam’s ability to scale its operations and capture higher-margin contracts in the Foundry and Logic space.

Analyst Consensus: A Wall of Support

The analyst community is increasingly bullish on LRCX. As of August 2025, 27 Wall Street analysts rate the stock as a “Moderate Buy” or higher, with 20 “Buy” ratings and 7 “Hold” ratings [6]. The average 12-month price target of $107.30 implies a 3.5% upside from the current price, but Cantor Fitzgerald’s $120 target—backed by a $6.00 EPS forecast—suggests there’s room for much stronger appreciation. What’s more, 23 analysts have raised their price targets in recent months, reflecting growing confidence in Lam’s execution and market positioning [7].

Why This Is a “Strong Buy”

The combination of Cantor Fitzgerald’s upgraded target, management’s aggressive roadmap, and the industry’s structural tailwinds creates a rare alignment of catalysts. Lam’s pivot to Foundry and Logic isn’t just a defensive move—it’s a proactive strategy to dominate in the AI and high-performance computing era. With a 2026 EPS projection that outpaces consensus and a stock price that still trades at a discount to its long-term potential, LRCX offers a compelling risk-reward profile.

For investors, the message is clear: Lam Research is not just riding the semiconductor wave—it’s helping to create it.

Source:
[1] Cantor Fitzgerald Raises PT on Lam Research Corporation [https://uk.finance.yahoo.com/news/cantor-fitzgerald-raises-pt-lam-093433012.html]
[2] Lam Research (LRCX) Gains Analyst Confidence with Bullish ... [https://finance.yahoo.com/news/lam-research-lrcx-gains-analyst-042229407.html]
[3] Lam Research (NASDAQ:LRCX) Given New $120.00 Price ... [https://www.marketbeat.com/instant-alerts/cantor-fitzgerald-increases-lam-research-nasdaqlrcx-price-target-to-12000-2025-08-21/]
[4] Lam Research stock price target raised to $120 from $115 ... [https://www.investing.com/news/analyst-ratings/lam-research-stock-price-raised-to-120-from-115-at-cantor-fitzgerald-93CH-4204688]
[5] Lam Research (LRCX) Gains Analyst Confidence with Bullish ... [https://finance.yahoo.com/news/lam-research-lrcx-gains-analyst-042229407.html]
[6] Lam Research (LRCX) Stock Forecast and Price Target 2025 [https://www.marketbeat.com/stocks/NASDAQ/LRCX/forecast/]
[7] Lam Research (LRCX) Stock Forecast & Price Target 2025 [https://stocksguide.com/en/forecast/Lam-Research-US5128073062]