B. Riley Raises Lam Research Price Target to $385 on AI Capex Surge

B. Riley raised its price target on Lam Research (NASDAQ:LRCX) to $385 from $350, reiterating a Buy rating on the semiconductor equipment maker. The firm highlighted that AI-related capital expenditure is accelerating faster than anticipated, with hyperscalers and neo-cloud providers driving significantly higher spending expectations for 2026 through 2028. This adjustment reflects a broader trend in the semiconductor industry, where companies like Lam Research are critical suppliers of wafer fabrication equipment used to manufacture advanced chips. The raised target suggests confidence in Lam's ability to capture demand from the ongoing AI infrastructure buildout, which requires specialized memory and logic chips produced using Lam's etching and deposition tools.

The upgrade reflects growing demand for advanced chip manufacturing equipment as AI workloads and increasing chip intensity from major model providers tighten semiconductor supply-demand dynamics. B. Riley noted that these trends support stronger earnings revisions across the sector. Lam Research, a key supplier of wafer fabrication equipment, stands to benefit from the sustained investment cycle. The company's tools are essential for producing high-performance chips used in data centers, AI accelerators, and edge devices. As AI models become more complex, the need for cutting-edge manufacturing processes increases, driving orders for Lam's products. Traders can track the stock's reaction on NowPrice's real-time equities dashboard, which provides up-to-date pricing and volume data.

Looking ahead, investors will watch for upcoming earnings reports from Lam Research and peers to gauge the pace of order growth. The company's guidance will be closely scrutinized for signs of demand acceleration from AI-related spending. Any shifts in capital expenditure plans from major cloud providers like Amazon Web Services, Microsoft Azure, or Google Cloud could also influence the stock's trajectory. Additionally, geopolitical factors such as export controls on semiconductor equipment to China may impact Lam's revenue outlook. Analysts will monitor industry indicators like wafer starts and equipment utilization rates to assess the sustainability of the current upcycle.