January 16, 2025 - Shares of Lam Research Corporation ( NASDAQ:LRCX ) was higher 6.3% on Thursday trading despite recent downgrade from Wolfe Research analyst Chris Caso who lowered Lam from "Outperform" to "Peer Perform" on January 15, 2025, with unchanged price target.

Wolfe's analyst concerned over company's dependence on the NAND flash memory market that makes a significant portion of its total revenue.

The production and consumption of NAND memory occurs in Asia, particularly in east Asia. Investors' confident today was allegedly driven by Lam's efforts in navigating the potential challenges imposed by the upcoming administration's trade policies that restrict trade activities involving countries from Asia including China and Taiwan.

Lam is trying to diversify its global supply chains to avoid high tariff and export restrictions under Trump's administration that could burden Lam's financial position in the future. As the trade tension evolve, Lam adjusting itself to continue drive market optimism.

Despite the downgrade from Wolfe, the consensus set one-year average price targets for Lam Research Corp at $91.65 with range between $75 to $114.00.

This article first appeared on GuruFocus .