How Investors May Respond To Lam Research (LRCX) Expanding Oregon R&D Hub For AI-Focused Chip Equipment

• In November 2025, Lam Research marked the opening of its new US$65 million, four-story, 120,000-square-foot Tualatin Building G in Oregon’s Silicon Forest, adding up to 700 workspaces to support its research and development operations for semiconductor fabrication equipment used in the AI era.
• This expansion, alongside plans for further lab and infrastructure growth near key customers, highlights how Lam is aligning its global R&D footprint with expected long-term demand for advanced chip manufacturing capacity.
• Now we’ll explore how this Oregon expansion and added R&D capacity might influence Lam Research’s existing investment narrative around AI-driven demand.

AI is about to change healthcare. These 30 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

Lam Research Investment Narrative Recap

To own Lam Research, you need to believe that AI and advanced chip architectures will keep driving demand for its etch and deposition tools, even as wafer fab equipment cycles remain uneven. The new US$65 million Tualatin Building G adds R&D capacity that supports this AI thesis, but it does not materially change the near term catalyst, which remains customers’ capital spending plans, or the key risk of a demand pullback or policy shock in major markets like China.

The recent analyst price target increase to US$158 per share highlights how some on Wall Street are reacting to Lam’s strong results and AI exposure, alongside its ongoing buybacks and rising dividend. That mix of cash returns and reinvestment, combined with the Oregon expansion, sits right at the intersection of Lam’s biggest potential upside driver and its most important operational risk around sustaining high R&D spend.

Yet while the growth story around AI tools looks appealing, investors should also be aware of how exposed Lam remains to a handful of large customers and...

Read the full narrative on Lam Research (it's free!)

Lam Research's narrative projects $23.6 billion revenue and $6.7 billion earnings by 2028. This requires 8.5% yearly revenue growth and about a $1.3 billion earnings increase from $5.4 billion today.

Uncover how Lam Research's forecasts yield a $160.30 fair value, in line with its current price.

Exploring Other Perspectives

Fourteen members of the Simply Wall St Community currently place Lam’s fair value anywhere between about US$67 and US$160 per share, underscoring sharply different expectations. Against that backdrop, Lam’s heavy reliance on a few major chipmakers and memory manufacturers gives those differing views real weight for anyone thinking about how sustainable its current performance might be.

Explore 14 other fair value estimates on Lam Research - why the stock might be worth as much as $160.30!

Build Your Own Lam Research Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Lam Research research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Lam Research research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Lam Research's overall financial health at a glance.

Want Some Alternatives?

Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay:

• The latest GPUs need a type of rare earth metal called Neodymium and there are only 36 companies in the world exploring or producing it. Find the list for free.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com