RBC initiates coverage on semiconductor and SemiCap stocks with bullish AI view

Lam Research

15/01/2026 09:31

** Shares of semiconductor and SemiCap companies rise between ~5.4% to ~1% in premarket

** RBC Capital Markets initiates coverage on major U.S. semiconductor cos such as Nvidia NVDA.O, Micron MU.O, Marvell MRVL.O, Arm Holdings ARM.O, ASML Holding ASML.O, Applied Materials AMAT.O, and Lam Research LRCX.O with "outperform" ratings, and a "sector perform" rating on Broadcom AVGO.O, AMD AMD.O, Intel INTC.O, Sandisk SNDK.O, KLA Corp KLAC.O, and Qualcomm QCOM.O

** Brokerage says "AI bubble concerns notwithstanding, we expect hyperscale capex to remain robust for the next 18-24 months as intense competition for AI leadership continues, and AI monetization trends are improving, and (Big4) hyperscalers' financials do not appear stressed"

** RBC expects any slowdown in technology spending to be gradual, driven by the prolonged AI leadership battle, persistent scaling laws, the compute demands of Artificial General Intelligence (AGI), and favorable geopolitics expanding global demand

** Following are the ratings and price targets on the companies

Company
Stock Rating
Price Target
Nvidia
Outperform
$240
Broadcom
Sector Perform
$370
Micron
Outperform
$425
AMD
Sector Perform
$230
Intel
Sector Perform
$50
Qualcomm
Sector Perform
$180
Arm
Outperform
$140
Marvell
Outperform
$105
Sandisk
Sector Perform
$400
Astera Labs ALAB.O
Outperform
$225
Lattice LSCC.O
Outperform
$105
Skyworks SWKS.O
Sector Perform
$65
Silicon Labs SLAB.O
Sector Perform
$160
ASML
Outperform
$1,550
Lam Research
Outperform
$260
Applied Materials
Outperform
$385
KLA Corp
Sector Perform
$1,550

 (Reporting by Akriti Shah in Bengaluru)

 ((akriti.shah@thomsonreuters.com))