2 Chip Stocks Driving Today's Rally With Lofty Bull Notes

Both LRCX and AMAT are buzzing today after last week's steep selloff into the holiday Lam Research Corp (NASDAQ:LRCX) and Applied Materials Inc (NASDAQ:AMAT) are contributing to the semiconductor and memory stock rally this morning, after Goldman Sachs hiked its price targets on both names to $380 and $645, respectively. LRCX and AMAT are up 5% and 4.8% ahead of the open, and a big reason why the VanEck Semiconductor ETF (SMH) is 2.8% higher this morning. LRCX hit a record high of $438.50 on June 30, and is up 105% on the year heading into today. AMAT snagged its own record high of $739.67 on the same day, and boasts a 135% lead in 2026. Despite the sharp two-day pullback last week into the 4th of July weekend, $350 held for Lam Research and $600 stepped up for Applied Materials. The similarities don't end there. Both stocks are widely loved by the brokerage bunch and don't have much short-covering potential. They also both sport lofty Schaeffer's Volatility Scorecards (SVS). LRCX and AMAT's respective readings come in at 76 and 92 (out of 100), suggesting the equities have each consistently realized higher volatility than its options have priced in.