Lam Research stock rises nearly 3% as AI demand drives strong Q3 results, guidance

Investing.com -- Lam Research Corporation (NASDAQ: LRCX) reported third-quarter results that exceeded analyst expectations, driving shares up 2.9% as the semiconductor equipment maker benefited from AI-driven demand.

The company posted adjusted earnings per share of $1.47, beating the analyst consensus of $1.35 by $0.12. Revenue reached $5.84 billion, surpassing the $5.73 billion estimate and marking a 24% increase from $4.72 billion in the same quarter last year. The strong performance was driven by what the company described as AI-driven demand reshaping the semiconductor industry.

For the fourth quarter, Lam Research issued guidance that topped Wall Street expectations. The company forecast revenue of $6.2 billion to $7.0 billion, with a midpoint of $6.6 billion exceeding the consensus estimate of $6.05 billion. Adjusted EPS guidance of $1.50 to $1.80, with a midpoint of $1.65, also surpassed the analyst consensus of $1.45.

"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."

Systems revenue for the quarter totaled $3.73 billion, while customer support-related revenue reached $2.11 billion. Geographically, China represented 34% of revenue, followed by Korea and Taiwan at 23% each.

The company’s adjusted gross margin came in at 49.9% of revenue, while adjusted operating margin reached 35.0%. Cash and cash equivalents decreased to $4.77 billion from $6.20 billion in the prior quarter, primarily due to capital return activities and debt payments.

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