Shares of semiconductor equipment maker Lam Research (NASDAQ:LRCX) jumped 4.1% in the afternoon session after Morgan Stanley analyst Joseph Moore upgraded the company's stock from an Underweight to an Equal-Weight rating.

Alongside the rating change, the analyst significantly raised the price target on the shares to $125.00 from $92.00. This new target represented a substantial 35.87% increase, signaling renewed confidence in the company's prospects. The move from Morgan Stanley aligned with a broader positive view from Wall Street. According to data from 32 brokerage firms, Lam Research held an average recommendation that stood between a Strong Buy and a Buy, with twenty of those firms rating the stock as a Strong Buy.

The shares closed the day at $132.21, up 4.2% from previous close.

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Lam Research’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 11 days ago when the stock gained 6.5% on the news that the company unveiled a breakthrough deposition tool for next-generation chips used in artificial intelligence (AI) and high-performance computing (HPC).

The new tool, named VECTOR® TEOS 3D, is engineered to address key manufacturing challenges in 3D stacking and advanced packaging, which are essential for producing more powerful and complex semiconductors. This innovation is seen as critical for the rapidly growing AI and HPC sectors. In response to the announcement, Wall Street analysts showed increased confidence in the company's outlook. Both Cantor Fitzgerald and Citigroup raised their price targets on Lam Research stock to $120, while maintaining their "Buy" ratings, signaling a positive view of the company's competitive positioning and new product platforms.

Lam Research is up 82.3% since the beginning of the year, and at $132.03 per share, has set a new 52-week high. Investors who bought $1,000 worth of Lam Research’s shares 5 years ago would now be looking at an investment worth $4,143.

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