LRCX

AI Research

IBM collaboration + record 2025 revenue $20.6B → Morgan Stanley raises PT to $254

Lam Research announced a collaboration with IBM on March 10, 2026, while the company reported record fiscal 2025 annual revenue of $20.6 billion (27% YoY growth) with gross margin at 49.9% and diluted EPS of $4.89 (49% YoY increase). Morgan Stanley raised its price target to $254 from $244 on February 23, 2026, reflecting strong semiconductor equipment demand driven by AI and data center trends. The stock trades near $217, with analysts remaining constructive on LRCX's positioning in the AI-driven semiconductor upcycle despite geopolitical risks around Taiwan.