Goldman Sachs initiates Lam Research with a Buy rating and $115 price target, citing stable revenue dynamics across the semiconductor capital equipment industry.

Goldman Sachs analyst James Schneider initiated coverage of Lam Research (LRCX) with a Buy rating and $115 price target. He sees stable revenue dynamics across the semiconductor capital equipment sector through 2026, with more downside than upside risks. Schneider believes China represents opportunity, and NAND is due for a rebound into 2026.

Goldman Sachs analyst James Schneider has initiated coverage on Lam Research (LRCX) with a Buy rating and a $115 price target. The analyst sees stable revenue dynamics across the semiconductor capital equipment sector through 2026, with more downside than upside risks. Schneider believes that China represents an opportunity, and NAND is due for a rebound into 2026.

The semiconductor capital equipment sector is a critical component of the global technology supply chain, providing the tools and infrastructure necessary for the design, fabrication, and testing of advanced electronic products. Lam Research, a leading provider of semiconductor manufacturing equipment, plays a pivotal role in this ecosystem.

Schneider's analysis highlights several key factors supporting his positive outlook. First, the analyst expects stable revenue dynamics in the sector, driven by the ongoing demand for advanced electronic products and the need for more sophisticated manufacturing tools. While Schneider acknowledges the potential for more downside risks than upside opportunities, he believes that the sector's fundamentals are strong enough to support growth.

Second, Schneider sees China as a significant opportunity for Lam Research. The country's growing technology sector and increasing investment in semiconductor manufacturing present a potential market for the company's products. Schneider's belief in China's long-term growth prospects is a key driver of his positive outlook on Lam Research.

Finally, Schneider anticipates a rebound in NAND, a type of memory used in data storage devices. The analyst believes that the market for NAND is due for a rebound into 2026, driven by increasing demand for data storage and the need for more efficient and cost-effective memory solutions.

Overall, Schneider's analysis of Lam Research is based on a thorough examination of the company's fundamentals and the broader semiconductor capital equipment sector. While the analyst acknowledges the potential for risks, he remains bullish on Lam Research's prospects and believes that the stock is undervalued relative to its peers.

References:
[1] https://www.investing.com/news/analyst-ratings/goldman-sachs-initiates-coverage-on-nvidia-stock-with-buy-rating-93CH-4129356
[2] https://au.finance.yahoo.com/news/reflecting-semiconductor-manufacturing-stocks-q1-033319445.html