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Lam Research Tops Estimates and Raises Outlook on AI Chip Orders

A fresh buy call naming the stock a top sector pick underscores confidence despite a China-related sales hit.

Overview

  • For the September quarter, revenue reached $5.32 billion and adjusted earnings were $1.26 per share, both ahead of consensus.
  • For the December quarter, the company guided to revenue of $5.20 billion plus or minus $300 million and adjusted EPS of $1.15 plus or minus $0.10, exceeding Wall Street forecasts.
  • Management said rising orders for wafer fabrication equipment used in artificial intelligence semiconductors are driving the stronger outlook.
  • Shares rose after the guidance and were lately up about 4.8% on Thursday to around $148, with the stock roughly doubling year to date.
  • Bank of America’s Vivek Arya named Lam his top equipment pick with a $165 target, citing ex‑China growth prospects and a path to gross margins above 50% despite an estimated $200 million hit from new U.S. China rules.