Morgan Stanley Hikes Lam Research (LRCX) PT to $158, Keeps Equal Weight on Increased 2027 Wafer Fab Equipment Forecast

Core Insights - Lam Research Corporation is recognized as a highly profitable tech stock, with Morgan Stanley raising its price target to $158 from $137 while maintaining an Equal Weight rating [1] - The firm has kept its 2026 Wafer Fab Equipment forecast at $129 billion, indicating an 11% year-over-year growth, and has increased its 2027 forecast to $145 billion, representing a 13% increase [1] Financial Performance - In FQ1 2026, Lam Research reported revenues of $5.32 billion, a 28% increase from $4.17 billion in the same quarter last year [2] - Non-GAAP earnings for the quarter were $1.26 per share, reflecting a year-over-year increase of 46.5% [2] - Systems revenues accounted for $3.55 billion, or 66.6% of total revenues, marking a 48% increase year-over-year and a 3% rise from the previous quarter [2] - The Customer Support Business Group generated $1.77 billion in revenues, contributing 33.4% to total revenues, with a 2.5% sequential rise and a 0.1% increase from the year-ago period [2] Future Guidance - Lam Research projects revenues of approximately $5.2 billion for FQ2 2026, suggesting a year-over-year growth of 9.8% [3] - The company anticipates a non-GAAP EPS of around $1.15, based on a diluted share count of 1.26 billion, indicating a year-over-year growth of 15.4% [3] Company Overview - Lam Research designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits across various regions including the US, China, Korea, Taiwan, Japan, Southeast Asia, and Europe [4]