Why Lam Research (LRCX) Is Climbing Today

Lam Research (LRCX) is advancing 4% after investment bank Cantor Fitzgerald issued a bullish note on the shares. Cantor reiterated a $100 price target and an Overweight rating on the name.

LRCX develops and markets equipment used to make semiconductors.

A technician operating an automated semiconductor processing machine with laser accuracy.

Why Cantor Is Bullish on LRCX

The investment bank expects the company to provide an upbeat forecast during its Investor Day which is scheduled to take place tomorrow. Specifically, Cantor predicts that LRCX will unveil new, attractive earnings targets for 2028 during the Investor Day.

Cantor predicts that the company will say that its earnings per share can almost double between 2024 and 2028, reaching about $6.50 by the latter year. Cantor’s upbeat forecast is based on Lam’s growth and strategic plans.

Moreover, the investment bank predicts that the firm’s dividend will jump to $1.50 per share by 2028 from its 2024 level of 79 cents per share.

Additional Information About Lam

Analysts on average expect LRCX’s earnings per share to climb to $3.73 in 2025 from $3.03 in 2024. In 2026, the mean estimate calls for its EPS to advance to $3.95.

The shares have a forward price-to-earnings ratio of 21.7 times.

In the last month, they have risen 7.5%, while they have advanced 22.4% in the last three months.

While we acknowledge the potential of LRCX, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LRCX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.