Analyst Upgrades PT on Lam Research After Q3 Earnings, What’s Next?

With a five-year forward EPS growth rate of almost 20%, Lam Research Corporation (NASDAQ:LRCX) makes it to the best long-term tech stocks to buy according to hedge funds.

Lam Research made notable developments during the Q3 FY2026, surpassing market expectations and keeping the ongoing AI-driven demand for semiconductor segment. The company posted $5.84 billion in total revenue, up 9% year-over-year, while adjusted earnings per share reached a record high of $1.47. Lam’s gross margin was around 49.8%, and its operating margins were at 35%. China continues to remain the largest market for Lam, contributing 34% to the revenue, with South Korea and Taiwan each putting in 23%.

Analyst Upgrades PT on Lam Research After Q3 Earnings, What's Next?

On April 23, Oppenheimer analyst Edward Yang lifted the price target on Lam Research from $265 to $330, maintaining an Outperform rating. Lam’s bullish outlook on LRCX is based on beating the higher-end of market expectations driven by the Customer Support Business Group and China, and a standout outlook for Q4. The company projected fourth quarter revenue to be around $6.60 billion, with gross margins anticipated to grow to 50.5% and operating margins to around 36.5%.

Out of 36 analysts, 27 have a Buy rating on LRCX and 8 have a Hold rating. The stock has a median price target of $315, which highlights an upside of more than 21%.

Lam Research Corporation (NASDAQ:LRCX) supplies semiconductor manufacturing equipment and services globally.

While we acknowledge the risk and potential of LRCX as an investment, 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 and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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