Stellar Lam Research quarter helping lift chip equipment stocks

|By:, SA News Editor

Lam Research (NASDAQ:LRCX) is up 6.5% today and setting new record highs after Q1 earnings that solidly beat even the high Street estimates last night.

Pacific Crest gave the stock a street-high price target of $180 today in response -- implying 33% upside even from today's sharply higher price.

"We could see upward revisions to spending throughout the year, and we expect memory to remain strong," says Morgan Stanley's Joseph Moore, writing that business "remains exceptional."

Chip equipment stocks have risen in sympathy: KLA-Tencor (NASDAQ:KLAC) is up 3%; MKS Instruments (NASDAQ:MKSI) is 3.3% higher; Veeco Instruments (NASDAQ:VECO) is up 6.5%; Teradyne (NYSE:TER) +1.9%. Applied Materials (NASDAQ:AMAT) is up 3% as well.