Wall Street upgrades pile up for chip gear makers as AI spending boom continues
Major banks are aggressively raising their price targets for Lam Research, citing a massive, multi-year boom in chip factory spending. With memory chip makers like Micron also seeing huge demand, the companies that actually manufacture the equipment to make these chips are in the perfect position to profit.
Idea
Both BofA and Citi drastically raised their price targets for Lam Research, pointing to a $250 billion wave of chip manufacturing investment. Separately, Yahoo Finance notes that Micron is seeing Nvidia-level demand for memory chips. Connecting the dots, the massive demand for AI memory chips directly translates to a multi-year boom for the equipment makers like Lam Research who supply the necessary machinery. This creates a strong fundamental backdrop to buy the equipment makers.