
Lam Research (LRCX) Stock Forecast & Price Target
Lam Research (LRCX) Analyst Ratings
Bulls say
Lam Research is poised for significant revenue growth, with expectations for Gate-All-Around (GAA) and Advanced Packaging (AP) revenues to exceed $3 billion in CY25 and their advanced packaging business to achieve a remarkable 400% growth from $200 million in CY23 to over $1 billion in CY24. Furthermore, Lam's Customer Support Business Group (CSBG) revenue has demonstrated impressive growth, increasing 180% since CY13 and projected to continue expanding at a compound annual growth rate (CAGR) of approximately 10% through CY28. The company’s gross margin contribution has shown improvement, particularly from its Malaysia facility, and predictions of ongoing benefits to margins enhance the overall financial outlook, alongside rising market share in the wafer fabrication equipment sector.
Bears say
Lam Research's upcoming financial outlook appears challenging, as the company is projected to experience stagnant growth with potential risks related to CXMT being added to an entity list, which could lead to modest revenue decline to approximately $15 billion by CY28. In CY24, Lam's revenue of $16.2 billion fell short of the low end of its target model, primarily due to significantly low NAND spending, which decreased to around $7 billion compared to historical levels. Furthermore, while the company's free cash flow margins allowed it to maintain a lower share count, the below-target EPS of $3.36 suggests an ongoing struggle to meet revenue and margin expectations, exacerbated by increased R&D expenditures.
This aggregate rating is based on analysts' research of Lam Research and is not a guaranteed prediction by Public.com or investment advice.
Lam Research (LRCX) Analyst Forecast & Price Prediction
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