Wells Fargo Adjusts Price Target on Lam Research to $355 From $350

US stock futures were stable on Wednesday ahead of the September inflation report. Bank of America shares fell over 2% after $1.2B in penalties from regulators. Memory stocks declined due to AI investment concerns and Chinese competition, with Micron down 4.6%. Financial stocks also dropped post-earnings, including Citigroup (-5.3%) and Wells Fargo (-2.6%).

Applied Materials (AMAT) shares dropped 7.5% after it declined to provide a wafer fabrication equipment (WFE) spending forecast, citing uncertainties. CEO Gary Dickerson expressed long-term confidence in AI-driven demand but highlighted near-term variables. Semiconductor equipment peers KLA Corp., Lam Research, and ASML Holding also fell. ASML's upcoming earnings are in focus.

BCNC, a South Korean semiconductor component maker, was ordered by a Seoul court to stop producing and distributing certain edge-ring products, pay damages, and destroy existing inventory, following a design-right infringement lawsuit by Lam Research. The court partially dismissed Lam Research's claims. Both companies are also involved in separate patent disputes, with mixed rulings. BCNC plans to appeal the decision.

Lam Research (LRCX) shares fell 2.42% to $325.81 on October 7, despite Cantor Fitzgerald raising its price target to $425 from $320. The company reported June-quarter revenue of $6.72 billion, up 15.1% from the prior quarter, with improved margins. Cantor's target suggests 30.4% upside, but shares are 106.68% above GF Value™ estimate of $157.64.

TSMC (TSM) stock hit a record high, nearing a $2.5T market cap, driven by AI chip demand. Morgan Stanley raised Lam Research's (LRCX) price target to $385, citing its share gains in advanced logic and expected December-quarter revenue of $9B, above consensus. The bank sees LRCX as a key beneficiary of TSMC's 2nm process advancements and increased capital expenditure share.

Morgan Stanley expects Lam Research (LRCX) to report over $9B in revenue for the December quarter, citing strong demand and supply chain improvements. The firm raised its price target to $385 and maintained an Overweight rating, forecasting increased market share and higher earnings for 2027.