Lam Research Corp. (NASDAQ: LRCX) stock rose nearly 3% Tuesday as semiconductor stocks rebounded, including rival semiconductor manufacturing equipment providers KLA Corp. (NASDAQ: KLAC), Applied Materials, Inc. (NASDAQ: AMAT), and ASML Holding N.V. (NASDAQ: ASML). Investors continued to weigh the company's record September-quarter results, stronger-than-expected guidance, and supply constraints that limited near-term upside.

Technology stocks gained 1.32%, while the S&P 500 rose 0.24%.

Cramer Prefers Lam Within The Group

On CNBC's "Mad Money," Jim Cramer said Lam is his preferred name over KLA, but warned that semiconductor-equipment stocks remain in a sharp selloff and said he would wait for clearer signs of stabilization before buying aggressively.

Lam Research stock gained over 36% in 2026 versus the PHLX Semiconductor Index's over 50% returns.

Lam Posts Record Quarter

In October, Lam reported fiscal first-quarter revenue of $8.22 billion, above the $8.15 billion consensus, while adjusted EPS of $2.20 topped the $2.18 estimate.

CEO Tim Archer said AI-driven semiconductor demand and greater device complexity helped Lam deliver record revenue, profit, and EPS.

Gross margin reached a record 52.4%, while operating margin exceeded 40% for the first time. Lam also generated a record $3.24 billion in free cash flow and raised its quarterly dividend 27% to 33 cents.

December Guidance Comes In Above Consensus

Lam expects second-quarter revenue of $8.2 billion-$9.0 billion, with the $8.6 billion midpoint slightly above consensus.

The company guided adjusted EPS to $2.18-$2.48, compared with the $2.31 analyst estimate.

Management also said some December-quarter shipments were delayed by component shortages and should shift into the March quarter.

China represented 35% of September revenue, but management expects that contribution to decline meaningfully in December as domestic Chinese spending slows.

Cantor Sees Supply, Not Demand, As The Constraint

Cantor Fitzgerald analyst C.J. Muse maintained an Overweight rating and a $500 price forecast, keeping Lam on the firm's Top Pick list.

Muse said the quarter and guidance were solid, although the outlook fell short of more aggressive buy-side expectations.

He argued that supply constraints, rather than weaker demand, are limiting Lam's near-term revenue.

Cantor also highlighted management's preliminary forecast for roughly $200 billion in 2027 wafer-fab-equipment spending, up from about $155 billion in 2026.

Muse models $215 billion, while industry checks suggest spending could reach as high as $225 billion.

He also raised his 2027 EPS estimate to $10.75 from $10.25 and expects Lam's tool business to grow about 50% in 2026 versus roughly 40% for the broader industry.

Other Analysts Trim Forecasts

Other firms remained constructive but reduced price targets following the report.

Needham analyst Charles Shi maintained Buy and lowered his target to $290 from $390.

Mizuho analyst Vijay Rakesh maintained Outperform and cut his target to $360 from $365.

Morgan Stanley analyst Shane Brett maintained Overweight and lowered his target to $339 from $385.

LRCX Stock Price Activity: Lam Research shares were up 2.58% at $233.44 at the time of publication on Tuesday, according to market data.