Lam Research Corp (LRCX.O): Services & Gross Margin Outperformance; Maintain Buy

研报英文原文证据摘录

Lam Research Corp (LRCX.O): Services & Gross Margin Outperformance; Maintain Buy

Action |

30 Jul 2026 01:58:56 ET │ 13 pages

Lam Research Corp (LRCX.O)

Services & Gross Margin Outperformance; Maintain Buy

CITI'S TAKE

We are buyers of LRCX after reporting strong “beat and raise” results driven

by higher services sales in the Jun-Q and guiding Sep-Q to 20% Q/Q sales

growth. Lam raised 2026 WFE to low $150B from prior $140B and talked Buy

about extraordinary 2027 outlook/visibility. Lam delivered record 52% gross Price (29 Jul 26 16:00) US$252.35

margins on better pricing action and lifted long-term GM target to 55%. We

Target price US$450.00adjust our FY27/28/29 EPS 14%/7%/7% and maintain buy/TP of $450

based on 36x P/E vs prior 40x to reflect lower market multiples times revised Expected share price return 78.3%

2028 EPS. Expected dividend yield 0.4%

Expected total return 78.7%

“Extraordinary” 2027 Outlook — Management is highly bullish on the 2027

semiconductor investment cycle. The company expects WFE growth to be Market Cap US$315,582M

“extraordinary” as multiple new fabs come online, with DRAM becoming the

fastest-growing segment, followed by leading-edge foundry/logic and NAND.

Additional growth opportunities include the continued doubling of the Akara

conductor etch installed base, a multiyear NAND upgrade cycle toward 200+ layer Price Performance

devices, increasing semiconductor equipment intensity per wafer, and expanding (RIC: LRCX.O, BB: LRCX US)

adoption of advanced packaging technologies. Lam also highlighted opportunities

to gain share with new logic customers, while ongoing R&D investments are

expected to drive further product innovation and market expansion. Lam believes its

served available market (SAM) will expand faster than previously expected as it