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1. Company Snapshot

1.a. Company Description

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits.The company offers ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatments; and VECTOR plasma-enhanced CVD ALD products.It also provides SPEED gapfill high-density plasma chemical vapor deposition products; and Striker single-wafer atomic layer deposition products for dielectric film solutions.


In addition, the company offers Flex for dielectric etch applications; Kiyo for conductor etch applications; Syndion for through-silicon via etch applications; and Versys metal products for metal etch processes.Further, it provides Coronus bevel clean products to enhance die yield; Da Vinci, DV-Prime, EOS, and SP series products to address various wafer cleaning applications; and Metryx mass metrology systems for high precision in-line mass measurement in semiconductor wafer manufacturing.The company sells its products and services to semiconductors industry in the United States, China, Europe, Japan, Korea, Southeast Asia, Taiwan, and internationally.


Lam Research Corporation was incorporated in 1980 and is headquartered in Fremont, California.

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1.b. Last Insights on LRCX

Lam Research's recent performance was driven by strong Q3 results, with record revenue of $5.84 billion, up 9% sequentially and 24% year-over-year. The company's impressive quarterly results were fueled by AI demand surge and advanced packaging growth. Lam Research's gross margin was 49.9%, at the high end of the guidance range, and operating margin was 35%. Analysts expect a potential upside of 25.4% (Wall Street analysts, 2026). Additionally, the company's strategic growth and industry demand have been key drivers.

1.c. Company Highlights

2. Lam Research Q1 2026: Record Revenue, Margin Surge, and AI‑Driven Growth

Lam Research closed the March quarter on a high note, reporting $5.84 billion in revenue—up 9% sequentially and 24% YoY—thanks largely to a $2 billion haul from its Customer Support Business Group. Gross margin hit 49.9%, near the upper end of guidance, while EPS of $1.47 topped the consensus estimate of $1.36, underscoring operational discipline. As Douglas Bettinger noted, “the momentum is clear across all segments.” With a P/E of 49.73 and ROIC of 47.77 %, the stock is priced for continued upside amid a robust WFE backdrop.

Publication Date: Apr -23

📋 Highlights
  • Record Revenue: March 2026 revenue reached $5.84 billion, up 9% sequentially and 24% YoY, with CSBG contributing $2.1 billion (45% of total revenue).
  • Margin Strength: Gross margin hit 49.9% (high end of guidance), with EPS of $1.47 exceeding guided range, and guidance for 50.5% margin in Q2 2026.
  • WFE Growth Outlook: Lam raised 2026 WFE forecast to $140 billion, up from $135 billion, driven by AI demand, NAND conversions, and greenfield projects.
  • CSBG Expansion: CSBG revenue grew 25% YoY to $2.1 billion, with June 2026 guidance of $6.6 billion revenue and $1.65 EPS, reflecting high utilization and service demand.

Customer Support Business Group Surge

The CSBG drove a record $2.1 billion in revenue, up 25% YoY, reflecting high utilization and strong spares & service demand. Lam projects June revenue of $6.6 billion and EPS of $1.65, with gross margin tightening to 50.5%. The group’s performance showcases the firm’s ability to monetize long‑term relationships and upgrade cycles.

WFE Outlook and Market Expansion

Lam now forecasts WFE to reach $140 billion in 2026, a lift from $135 billion, driven by broad‑based demand across memory, logic, and AI data centers. The company’s served available market is poised to rise to the mid‑30s % of WFE, while China’s segment remains flat and global demand accelerates. This expansion signals resilience against regional supply constraints.

NAND and AI Demand

AI transformation is reshaping the memory hierarchy, with a projected $40 billion in conversion spending to push existing NAND fabs toward 200‑layer devices. Lam sees rising demand from AI data centers and under‑investment in NAND, fueling conversions to advanced technologies. High‑bandwidth memory (HBM) and 3D scaling are key growth vectors that align with Lam’s equipment portfolio.

Operational Efficiencies and Capex

Strategic investments—such as a new Malaysian site and factory footprints nearer customers—have delivered proximity‑driven efficiencies and higher margins. Lead times are stretching due to strong demand, yet the company maintains a disciplined capex trajectory, with OpEx growth expected to decelerate relative to revenue. The $4.3 billion remaining in the board‑authorized share repurchase program underscores confidence in cash generation.

Future Guidance and Shareholder Returns

Lam projects June EPS of $1.65 and a 50.5% margin, with guidance suggesting sustained profitability into 2027. The firm returned 139% of free cash flow to shareholders, reinforcing its commitment to value creation. As it refines long‑term targets later this year, the company’s outlook remains positive, buoyed by high utilization, AI‑driven demand, and a strong balance sheet.

3. NewsRoom

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Lam Research Corp (LRCX) Stock Up 3.7% but GF Value Says Overvalued -- GF Score: 87/100

Apr -30

Source: gurufocus.com

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Should You Invest in the State Street SPDR NYSE Technology ETF (XNTK)?

Apr -29

Source: zacks.com

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A Look at Lam Research Corp (LRCX) After 3.1% Decline -- GF Value $122.55 vs Price $259.56

Apr -27

Source: gurufocus.com

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TSMC vs. Lam Research: Which AI Infrastructure Stock Has an Edge?

Apr -27

Source: zacks.com

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Can DRAM Business Momentum Further Boost LRCX's Systems Revenues?

Apr -27

Source: zacks.com

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First Look: Meta deal blocked, Intellia win, oil climbs

Apr -27

Source: gurufocus.com

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Eagle Wealth Advisors LLC Acquires Shares of 3,660 Lam Research Corporation $LRCX

Apr -27

Source: defenseworld.net

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Comerica Bank Cuts Position in Lam Research Corporation $LRCX

Apr -27

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.00%)

6. Segments

Manufacturing and Servicing of Wafer Processing Semiconductor Manufacturing Equipment

Expected Growth: 11.0%

Lam Research's wafer processing semiconductor manufacturing equipment growth (11.0%) is driven by increasing demand for advanced semiconductors, rising complexity of chip designs, and expansion of manufacturing capacity by semiconductor producers. The company's strong portfolio of innovative equipment solutions and growing market share also contribute to its growth.

7. Detailed Products

ETCH PRODUCTS

Lam Research's etch products are designed to remove material from a substrate, typically silicon, during the fabrication process. These tools use various etch techniques, including plasma-based etching, to create precise patterns on the substrate.

DEPOSITION PRODUCTS

Lam Research's deposition products are designed to deposit thin films of material onto a substrate, typically silicon, during the fabrication process. These tools use various deposition techniques, including chemical vapor deposition (CVD) and atomic layer deposition (ALD).

CLEANING PRODUCTS

Lam Research's cleaning products are designed to remove contaminants and impurities from substrates, typically silicon, during the fabrication process. These tools use various cleaning techniques, including wet cleaning and dry cleaning.

STRIP AND CURE PRODUCTS

Lam Research's strip and cure products are designed to remove photoresist and other organic materials from substrates, typically silicon, during the fabrication process. These tools use various strip and cure techniques, including plasma-based strip and cure.

8. Lam Research Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The semiconductor industry is highly specialized, and Lam Research Corporation's products are crucial for the manufacturing of semiconductors. The threat of substitutes is low as customers rely heavily on Lam's equipment for their manufacturing processes.

Bargaining Power Of Customers

Lam Research Corporation's customers are primarily large semiconductor manufacturers. While they have some bargaining power due to their significant purchasing volumes, Lam's dominant position in the market and the critical nature of its equipment limit the customers' ability to negotiate aggressively.

Bargaining Power Of Suppliers

Lam Research Corporation has a diverse supplier base and is not heavily reliant on any single supplier. This reduces the bargaining power of suppliers, allowing Lam to maintain stable and favorable supply terms.

Threat Of New Entrants

The barriers to entry in the semiconductor equipment industry are high due to significant research and development costs, complex technology, and established relationships with customers. This makes it difficult for new entrants to compete effectively, reducing the threat to Lam Research Corporation.

Intensity Of Rivalry

The semiconductor equipment industry is highly competitive, with a few major players competing for market share. The competition is intense, with companies constantly innovating and improving their products to gain an edge over their rivals.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 36.85%
Debt Cost 4.33%
Equity Weight 63.15%
Equity Cost 12.14%
WACC 9.26%
Leverage 58.36%

11. Quality Control: Lam Research Corporation passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

257.86$

Current Price

257.86$

Potential

-0.00%

Expected Cash-Flows