Lam Research Corporation (NASDAQ:LRCX) is one of the best growth stocks to buy according to billionaire Dan Loeb. On June 23, Bank of America raised its price target on Lam Research Corporation (NASDAQ:LRCX) to $480 from $330 while maintaining a Buy rating.
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Lead ******* yst Vivek Arya said the price target hike was necessary to align with the firm's update to its semiconductor industry models. As part of the update, Arya and team identified five forces they believe will drive the next $1 trillion in chip industry revenues, which cover AI data centers, memory, semiconductor capital equipment, and reshoring, ******* og chips, and agentic CPU demand.
A key factor in the price target upgrade was BofA's revised forecast for wafer fabrication equipment (WFE) spending, the market in which Lam Research is a major player. The firm now projects the WFE spending to reach $250 billion by 2028, up from an earlier estimate of $203 billion. The spending can climb to $292 billion by 2030, the ******* ysts noted.
From the perspective of the broader semiconductor industry, BofA now projects total chip sales of $2.7 trillion by 2030, up from a prior estimate of $2.3 trillion. This implies a 28% compound annual growth rate from 2025 levels. The firm expects memory to be the single largest driver of this growth; it expects it to grow nearly 300% this year alone.
Portogas D Ace/Shutterstock.com
Lead ******* yst Vivek Arya said the price target hike was necessary to align with the firm's update to its semiconductor industry models. As part of the update, Arya and team identified five forces they believe will drive the next $1 trillion in chip industry revenues, which cover AI data centers, memory, semiconductor capital equipment, and reshoring, ******* og chips, and agentic CPU demand.
A key factor in the price target upgrade was BofA's revised forecast for wafer fabrication equipment (WFE) spending, the market in which Lam Research is a major player. The firm now projects the WFE spending to reach $250 billion by 2028, up from an earlier estimate of $203 billion. The spending can climb to $292 billion by 2030, the ******* ysts noted.
From the perspective of the broader semiconductor industry, BofA now projects total chip sales of $2.7 trillion by 2030, up from a prior estimate of $2.3 trillion. This implies a 28% compound annual growth rate from 2025 levels. The firm expects memory to be the single largest driver of this growth; it expects it to grow nearly 300% this year alone.
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