Lam Research price target lowered to $90 from $100 at Needham

Needham analyst Charles Shi lowered the firm’s price target on Lam Research (LRCX) to $90 from $100 but keeps a Buy rating on the shares. Needham sees 2025 as likely the peak WFE, saying the current semiconductor upcycle “will be lukewarm,” and the next downturn could hit in the second half of 2026. The firm is also rolling its Lam Research estimates forward to 2026 while reducing its CY25 estimates on a weaker WFE outlook. Needham adds however that the eventual recovery of NAND WFE, no matter how weak the recovery could be, is keeping it on the bull side on the name, stating that while the stock has significantly pulled back in the second half of 2024 and was the worst performer among the top 5 large-cap WFE names, memory companies will likely invest in technology upgrades ahead of a potential tightening of supply into the second half of 2025 and the growth of large-capacity SSDs for data center AI applications.