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On July 31, 2025, Lam Research's stock experienced a significant drop of 5.69% in pre-market trading, reflecting a notable shift in investor sentiment.
Summit Insights recently downgraded Lam Research's stock rating from Buy to Hold, citing expectations of moderating wafer fabrication equipment demand. This change in rating comes after the company reported its Q2 results, which included a non-GAAP EPS of $1.33, surpassing the consensus estimate of $1.21. Despite the earnings beat, the downgrade suggests that analysts are becoming more cautious about the company's future prospects.
In contrast, UBS increased its price target for
from $95 to $120, maintaining a 'Buy' rating. This revision indicates that while some analysts are becoming more conservative, others remain optimistic about the company's long-term growth potential. The differing opinions highlight the complexity of the semiconductor industry and the varying expectations for Lam Research's performance.
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