Lam Research Corp. (LRCX): Strong quarter with raised WFE expectations and increased financial targets - Buy

Research evidence excerpt

Lam Research Corp. (LRCX): Strong quarter with raised WFE expectations and increased financial targets - Buy

Equity Research

29 July 2026 | 7:05PM EDT

Lam Research Corp. (LRCX): Strong quarter with raised WFE

expectations and increased financial targets - Buy

Key stock takeaways: We expect the stock to trade higher following an in-line James Schneider, Ph.D.

+1(212)357-2929 |

quarter with guidance that came in well above the Street, relative to elevated jim.schneider@gs.com

Goldman Sachs & Co. LLC

investor expectations heading into the print. We believe investor positioning has

Anmol Makkar

been bullish heading into the quarter given announcements from memory suppliers +1(212)357-1366 |

on pulling in cleanroom capacity (particularly in DRAM), as well as continued anmol.makkar@gs.comGoldman Sachs & Co. LLC

strength in foundry CapEx from TSMC and others. We were encouraged by Luya You

management’s improved CY26 WFE outlook (up to the low-$150bn range, from +1(212)902-5297Goldman Sachs & Co.| luya.you@gs.comLLC

$140bn prior), with strength across all segments. The company also increased its Khalil Fenina

long-term target financial model - and now expects to achieve gross margin in the +1(212)357-6392 | khalil.fenina@gs.com

mid-50% range with operating margin in the mid-40% range over the next several Goldman Sachs & Co. LLC

years. We remain Buy rated on LRCX as we see the company being well positioned to

outperform peers given its high relative exposure to deposition and etch (where

intensity is set to rise across DRAM and foundry) and its strong share in NAND (where

Lam benefits from equipment upgrades).

Read-through to our coverage: We expect a positive reaction for AMAT (Buy) in our

coverage given similar end-market exposure.