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Lam Research Slides, Chipmakers Slump, as Evercore Sees Delayed 2020 Rebound

Martin Baccardax

lead semiconductor stocks lower Wednesday after analysts at Evercore ISI cut their target price on the stock and warned that a global recovery in chip memory demand could be delayed until late next year. Evercore analyst C.J. Muse lowered his target on Lam Research by $30 to $195 per share, and reduced his rating to 'in line' from 'outperform', even as it described the group as a "high quality company with superior earnings power through cycles". Evercore cited excess DRAM and NAND inventories, as well as expected cuts in capital spending from major chipmakers, as driving the delayed sector rebound.