Lam Research stock price target cut to $350 by Bernstein on supply constraints
Bernstein cut Lam Research's (LRCX) price target to $350 from $385, citing supply constraints. LRCX shares fell 6% to $235.49. Q1 FY2027 revenue was $8.22B, EPS $2.20, beating estimates. China revenue grew to 35%. Guidance for Q2 FY2027 is $8.6B revenue, $2.33 EPS. Management noted supply constraints but expects 30%+ systems revenue growth.
How this was made
The 30-second read
Why it matters
The earnings beat is offset by guidance softness and target reductions, likely prompting a short‑term sell‑off.
Market read
Analyst target cuts and supply‑chain concerns create bearish pressure on LRCX despite strong earnings.
What to watch
Potential upside from Aether long‑term revenue and a sharply increased buyback program.
Background
Lam Research reported FY2027 Q1 revenue of $8.22 bn and EPS $2.20, beating expectations, but analysts cut price targets due to supply‑chain constraints and a less favorable regional mix.
Ticker impact
Bernstein and other analysts cut Lam Research's price target to $350/$345/$290 citing supply constraints after the company reported Q1 FY2027 results and guidance.
likely pressure as the market prices in lower targets and supply‑chain headwinds
Target cuts from multiple houses and explicit mention of supply constraints indicate a bearish short‑term outlook.
Market effects
Semiconductor equipment sector may see broader pressure as supply constraints affect multiple vendors.
China exposure growth could offset some concerns but overall sentiment remains cautious.
Large‑cap equipment maker's guidance influences global chip‑fab investment outlook.
Counterpoint
Buy on dip if supply constraints ease and demand for DRAM/NAND remains strong.
Key entities
- companyLam Research
Semiconductor equipment maker (NASDAQ:LRCX).
- analystBernstein
Lowered price target to $350, maintaining Outperform.
