Citi analyst Atif Malik opened "Positive Catalyst Watches" on both Lam Research (LRCX) and MKS Instruments (MKSI) ahead of the companies' Q4 results. The analyst raised his global wafer fab equipment spend model to $47B and $55B from $45B and $51B to reflect the recent TSMC (TSM) capex hike and media reports that Samsung will double memory equipment spend after a sharp decline last year. Malik also raised his price target for Buy-rated Lam Research to $360 from $330 and Buy-rated MKS to $140 from $124. Lam is his top large cap pick in Semiconductor Capital Equipment while MKS is his top SMID pick.

Argus raised the firm's price target on TSMC to $160 from $130 and keeps a Buy rating on the shares. The analyst cites the company's Q1 earnings and revenue beat, stating that while the stock sold off on cautious company guidance for industry demand growth in 2024, the firm still expects solid company growth as inflation recedes and electronic device demand picks up. Throughout a down 2023, demand for the company's 5nm products remained strong, and TSMC has successfully ramped 3 nm node products, the firm added.