Lam Research Q1 revenue rises on higher semiconductor demand, but slightly falls below estimates

Overview

• US wafer fabrication equipment supplier's Q1 revenue slightly beat analyst expectations

• Adjusted EPS for Q1 beat analyst expectations

• Company cites AI-driven semiconductor demand and operational execution for record results

Outlook

• Lam sees Dec qtr revenue at $8.60 bln, plus or minus $400 mln

• Company expects Dec qtr gross margin of 52.5% plus or minus 1%

• Lam forecasts Dec qtr net income per diluted share at $2.33 plus or minus $0.15

Result Drivers

• AI DEMAND - Co said higher semiconductor demand driven by AI contributed to record revenue and profit

• TECHNOLOGY INVESTMENTS - Co said strategic investments in technology inflections and manufacturing capacity strengthened its ability to outgrow the wafer fabrication equipment market

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 30 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductor equipment & testing peer group is "buy"

• Wall Street's median 12-month price target for Lam Research Corporation is $380.00, about 44.2% above its October 20 closing price of $263.45

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 54 three months ago

Reuters Recommended Reads

• Oct 19 - AI chip startup Tenstorrent more than doubles its valuation to $6.2 billion in funding round

• Oct 20 - Switzerland's Comet Holding Q3 sales jump on AI, semiconductor demand

• Oct 19 - Amazon says its AI chips will work with popular coding language, challenging Nvidia

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)