Lam Research (LRCX): Valuation Check After Analyst Upgrades and AI-Driven Chip Spending Optimism

Simply Wall St.09:18

Lam Research (LRCX) just caught investors attention after a cluster of upbeat Wall Street calls tied its future even more tightly to AI driven chip spending and a potential equipment upcycle. See our ...

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See our ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/semiconductors/nasdaq-lrcx/lam-research/news/lam-research-lrcx-valuation-check-after-analyst-upgrades-and\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Lam Research (LRCX): Valuation Check After Analyst Upgrades and AI-Driven Chip Spending Optimism</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nLam Research (LRCX): Valuation Check After Analyst Upgrades and AI-Driven Chip Spending Optimism\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-12-23 09:18 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/semiconductors/nasdaq-lrcx/lam-research/news/lam-research-lrcx-valuation-check-after-analyst-upgrades-and><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Lam Research (LRCX) just caught investors attention after a cluster of upbeat Wall Street calls tied its future even more tightly to AI driven chip spending and a potential equipment upcycle. See our ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/semiconductors/nasdaq-lrcx/lam-research/news/lam-research-lrcx-valuation-check-after-analyst-upgrades-and\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LRCX","symbol_name":"拉姆研究","start_time":0,"source_url":"https://simplywall.st/stocks/us/semiconductors/nasdaq-lrcx/lam-research/news/lam-research-lrcx-valuation-check-after-analyst-upgrades-and","article_id":"2593714466","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/30655-main-header/1756252992789"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/semiconductors/nasdaq-lrcx/lam-research/news/lam-research-lrcx-valuation-check-after-analyst-upgrades-and","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2593714466","pubTimestamp":1766452725,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Lam Research (LRCX) just caught investors attention after a cluster of upbeat Wall Street calls tied its future even more tightly to AI driven chip spending and a potential equipment upcycle.\nSee our latest analysis for Lam Research.\nThose upbeat calls are landing on a stock that already has strong momentum, with Lam’s share price up 22.9 percent over the past month and a 141.9 percent year to date share price return, alongside a 1 year total shareholder return of 139.7 percent. This signals...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["rate"],"viewcount":null,"language":"en","relate_stocks":{"LRCX":"拉姆研究"},"translate_title":"泛林研究(LRCX)：分析师升级和人工智能驱动的芯片支出乐观情绪后的估值检查","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"LRCX":1.5},"content_text":"Lam Research (LRCX) just caught investors attention after a cluster of upbeat Wall Street calls tied its future even more tightly to AI driven chip spending and a potential equipment upcycle. See our latest analysis for Lam Research. Those upbeat calls are landing on a stock that already has strong momentum, with Lam’s share price up 22.9 percent over the past month and a 141.9 percent year to date share price return, alongside a 1 year total shareholder return of 139.7 percent. This signals that investors are leaning into the AI equipment story rather than fading it. If AI infrastructure is on your radar, this is also a good moment to scan the broader landscape and discover high growth tech and AI stocks that could benefit from similar themes. After such a powerful run, and with Lam now trading slightly above the average analyst price target, investors have to ask if this AI powered momentum still leaves room for upside or if the market is already discounting years of growth. Most Popular Narrative Narrative: 9.3% Overvalued Compared to Lam Research’s last close at $175.27, the most followed narrative pegs fair value at $160.30, implying the market is running ahead of modeled cash flows.  Fair Value Estimate has risen slightly, from $158.52 to $160.30, reflecting modestly stronger profitability assumptions. Future P/E has risen marginally, from 33.31x to 33.40x, signaling a modest uptick in the multiple applied to forward earnings.  Read the complete narrative. Want to see why a richer earnings multiple suddenly looks acceptable here? The fair value hinges on sustained margin strength and carefully modeled mid single digit growth, underpinned by a specific discount rate that quietly reshapes the upside narrative. Result: Fair Value of $160.30 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, ongoing geopolitical tensions and highly cyclical WFE spending could derail AI driven demand expectations and quickly challenge today’s richer valuation narrative. Find out about the key risks to this Lam Research narrative.  Build Your Own Lam Research Narrative If you see the story differently or want to dig into the numbers yourself, you can build a custom Lam Research view in minutes: Do it your way. A great starting point for your Lam Research research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Looking for more investment ideas? Before you move on, lock in an edge by scanning other smart opportunities on Simply Wall St’s Screener so you are not relying on one stock alone.  Capture early stage potential with these 3629 penny stocks with strong financials that already show solid financial underpinnings instead of vague turnaround promises. Capitalize on powerful automation trends through these 29 healthcare AI stocks that blend defensible demand with cutting edge data science. Secure resilient cash returns using these 10 dividend stocks with yields > 3% that pair meaningful yields with businesses built to sustain payouts.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.The New Payments ETF Is Live on NASDAQ:Money is moving to real-time rails, and a newly listed ETF now gives investors direct exposure. Fast settlement. Institutional custody. Simple access.Explore how this launch could reshape portfoliosSponsored ContentNew: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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