Key insights
- Lam Research reported strong Q3 results and provided above-consensus Q4 guidance, driven by AI-related chip demand. This positive outlook for a key semiconductor equipment supplier suggests continued strength in the AI sector and potentially broader positive sentiment for technology stocks. The strong earnings and guidance beat could lead to upward revisions in analyst estimates for the sector.
Investing.com - Lam Research Corp. (NASDAQ:LRCX) reported third-quarter results that exceeded analyst expectations and issued fourth-quarter guidance well above estimates, driven by robust demand for chipmaking equipment used in artificial intelligence semiconductor manufacturing. Shares rose 3% in after-market trading.
The semiconductor equipment maker posted adjusted earnings of $1.47 per share on revenue of $5.84 billion for the third quarter ended March 29. Both figures surpassed analyst consensus estimates of $1.35 per share and $5.73 billion, respectively. Revenue was flat compared to the same quarter last year.
For the fourth quarter ending June 28, Lam Research projected revenue of $6.60 billion, plus or minus $400 million, significantly above the analyst estimate of $6.09 billion. The midpoint of $6.60 billion represents an 8% premium to consensus. The company also forecast adjusted earnings of $1.65 per share, plus or minus 15 cents, compared with the analyst estimate of $1.45 per share. The midpoint of $1.65 exceeds the consensus by 14%.
"Lam delivered record revenue and EPS in the March quarter as AI-driven demand reshapes the semiconductor industry," said Tim Archer, Lam Research’s President and Chief Executive Officer. "Our strategic investments and the velocity of our execution are generating strong momentum, enabling customers’ AI roadmaps and driving Lam’s outperformance during this critical phase of industry growth."
The strong performance reflects increased orders from chipmakers ramping production of advanced semiconductors for AI applications. Third-quarter adjusted net income reached $1.85 billion, up from $1.60 billion in the year-ago period.
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