BUZZ- Lanrui Technology shares decline as component shortages limit growth outlook for this fiscal year

October 22 - ** Chip equipment manufacturer Lam Research (LRCX.O) saw its share price fall 7.8% in pre-market trading to $240.59

** According to data compiled by London Stock Exchange Group (LSEG), the company is expected to post second-quarter revenue and adjusted profit above analyst expectations (link), but analysts are concerned about shortages of chips and other equipment used to manufacture LRCX products

** Wafer fab equipment (WFE) spending is estimated to be in the middle of $150 billion for 2026, with preliminary estimates for 2027 exceeding $200 billion, but supply chain bottlenecks will limit growth, CEO Timothy Archer said on a conference call

** Citigroup warned investors not to raise their growth expectations for WFE in 2027/2028 due to shortages of DRAM, PCB circuit boards, and magnets, and lowered its target price from $450 to $435

** Growth expectations have been quickly revised upward; the supply chain may need two quarters to catch up, so LAM’s earnings forecast revisions could stall before resuming upward, according to TD Cowen

** The sell-off in semiconductor stocks on Thursday also impacted the stock

** Nevertheless, 30 analysts have given the stock a “buy” or higher rating, while 4 have rated it “hold”, with a median target price of $352.50 — LSEG compiled data

** As of the last trading day’s close, the stock had risen 50% year-to-date

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