Lam Research Forecasts Higher Revenue Amid Strong AI Chipmaking Demand

Lam Research has projected second-quarter revenue above Wall Street expectations, driven by surging demand for semiconductor manufacturing tools used in artificial intelligence applications. The Fremont, California-based firm said it expects revenue of around $5.20 billion, plus or minus $300 million, for the quarter ending December 28 — ahead of analysts’ forecasts of $4.81 billion, according to LSEG data.

The company’s shares rose 2.2% in after-hours trading and have already doubled this year, fueled by global investment in AI-driven chip production. Lam, a leading supplier of wafer fabrication equipment (WFE), provides critical tools used in the complex processes of chip wiring and wafer etching.

Lam faces competition from industry heavyweights such as Applied Materials, Analog Devices, and ASML, but remains well-positioned as chip designers expand capacity to meet escalating computing demands. The firm reported $5.32 billion in revenue for the previous quarter, surpassing expectations, and adjusted earnings of $1.26 per share versus $1.22 projected. The AI semiconductor boom continues to lift equipment makers across the global chip supply chain.