Lam Research target raised to $475, fueled by $300B chip equipment forecast

Susquehanna raised its price target on Lam Research to $475 from $385. The firm maintained its Positive rating on the stock.

Analysts increased the 2028 wafer fab equipment spending forecast to $300 billion. This projection marks a significant rise from the previous $218 billion estimate.

Mehdi Hosseini reported that semiconductor equipment backlogs now extend beyond one year. Large customers are paying premiums to secure equipment allocations for late 2027 and 2028. Rising demand and higher average selling prices drive the upgraded spending outlook for the sector.