What Happened?
Shares of semiconductor equipment maker Lam Research (NASDAQ: LRCX) jumped 2.9% in the morning session after Morgan Stanley raised its price target on the stock to $158 from $137. The firm maintained its "Equalweight" rating on the shares. This adjustment signaled a more positive outlook on the company's valuation from the investment bank. The move came as the semiconductor equipment maker had been drawing interest from investors, reportedly due to its robust financial stance and potential for growth.
After the initial pop the shares cooled down to $156.61, up 1.2% from previous close.
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What Is The Market Telling Us
Lam Research’s shares are very volatile and have had 22 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 8 days ago when the stock gained 6% on the news that renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday. The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector, lifting shares of Broadcom, Micron, and Palantir significantly. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.
Lam Research is up 116% since the beginning of the year, and at $156.61 per share, it is trading close to its 52-week high of $166.37 from November 2025. Investors who bought $1,000 worth of Lam Research’s shares 5 years ago would now be looking at an investment worth $3,268.
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