Why Is Lam Research Stock Soaring Thursday?

Core Insights - Lam Research Corp. (NASDAQ:LRCX) stock experienced a significant rise due to bullish analyst actions, including RBC Capital's initiation of coverage with an Outperform rating and a price target of $260, alongside Wells Fargo's upgrade to Overweight with a target increase from $145 to $250 [1][2]. Analyst Actions - The stock has a Buy Rating with an average price target of $189.18, reflecting strong analyst consensus [3]. - Recent upgrades from various analysts include Stifel and Bank of America Securities, with price targets clustered between $225 and $260, indicating growing optimism about Lam's earnings trajectory [2][8]. Stock Performance - Lam Research's stock is currently trading 17.2% above its 20-day simple moving average (SMA) and 46.9% above its 100-day SMA, showcasing strong performance in both short-term and long-term metrics [4]. - Over the past 12 months, shares have increased by 186.99%, positioning them closer to their 52-week highs [4]. Technical Indicators - The Relative Strength Index (RSI) is at 65.75, indicating a neutral position, while the Moving Average Convergence Divergence (MACD) is above its signal line, suggesting bullish momentum [5]. - The combination of a neutral RSI and bullish MACD indicates positive momentum for the stock [5]. Earnings Forecast - Investors are anticipating the next earnings report scheduled for January 28, 2026, with an EPS estimate of $1.17 (up from $0.91 year-over-year) and a revenue estimate of $5.23 billion (up from $4.38 billion year-over-year) [6][9]. Valuation and Quality Metrics - The stock is trading at a premium P/E ratio of 46.1x, which analysts justify by the expected 29% earnings growth [3][9]. - Benzinga Edge rankings indicate a strong quality score of 96.21/100, reflecting a healthy balance sheet, while the value score is low at 7.84/100, suggesting the stock is priced for perfection [7][9]. ETF Exposure - Lam Research has significant exposure in various ETFs, which could lead to automatic buying or selling based on inflows or outflows, impacting the stock price [10]. - At the time of publication, Lam Research shares were up 5.98% at $221.28, trading near its 52-week high of $222.58 [10].