Lam Research Positioned For Growth Amid NAND Recovery And Advanced Packaging Strength, Analysts Highlight China Risks

Core Viewpoint - Lam Research is positioned to benefit from key technology trends and a recovery in NAND, with analysts maintaining a positive outlook despite challenges in China and export controls [1][2]. Group 1: Analyst Ratings and Price Forecasts - BofA Securities analyst Vivek Arya reiterated a Buy rating on Lam Research, raising the price forecast to $92 from $88 [1]. - Goldman Sachs analyst Toshiya Hari also maintained a Buy rating but lowered the price forecast to $96 from $102.50 [2]. Group 2: Market Opportunities and Growth Drivers - Lam Research is expected to gain market share in wafer fabrication equipment (WFE) due to advancements in NAND, leading-edge foundry/logic, and DRAM, with a forecasted mid-$90 billion WFE market for 2024 [2]. - The company anticipates WFE spending growth in 2025, driven by changes in NAND technology and ongoing strength in DRAM, HBM, and leading-edge foundry sectors [2]. Group 3: Revenue Composition and Market Perception - China's contribution to Lam Research's total revenue decreased to 37% in the September quarter from 42% in the March quarter and 39% in the June quarter [3]. - The market is likely to view the decline in China's revenue contribution positively, as it typically assigns a below-average multiple to revenue generated in China [3]. Group 4: Stock Performance - Lam Research shares are trading higher by 4.87% to $76.41 at the last check [3].