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Lam Research slides as component shortage limits FY growth outlook

By Reuters News

** Shares of chip-equipment maker Lam Research LRCX.O fall 7.8% to $240.59 premarket

** Co forecasts Q2 revenue, adj. profit above analysts' expectations, according to data compiled by LSEG, but analysts voice concerns about shortage of chips and other tools to make LRCX's products

** 2026 Wafer fab equipment (WFE) spending expected in the mid-$150 bln, preliminary estimate of over $200 bln in 2027 as supply chain constrains limit growth - CEO Timothy Archer in conference call

** Citigroup cautions investors from raising 2027/2028 WFE growth expectations due to shortages of components such as DRAM, PCB boards and magnets, trims PT to $435 from $450

** Expectations for growth moved up quickly; could take two quarters for supply chain to catch up so LAM's earnings revisions could stall before resuming higher - TD Cowen

** Stock also impacted by selloff in semiconductor stocks on Thursday

** Still, 30 analysts rate stock "buy" or higher and 4 "hold", median PT at $352.50 - LSEG-compiled data

** Up to last close, stock has risen 50% YTD

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