Summary of Lam Research Corporation Conference Call Company Overview - **Company**: Lam Research Corporation (NASDAQ:LRCX) - **Industry**: Semiconductor and Semiconductor Capital Equipment Key Points and Arguments Industry Dynamics - The semiconductor capital equipment industry is experiencing significant growth and capital intensity, indicating a renaissance in the sector [2][3] - There is a shift in perception towards viewing the semiconductor industry as secular rather than purely cyclical, which is a positive development [3] Financial Performance in 2023 - Lam Research's performance in 2023 was better than initially expected, despite a severe downturn in the NAND market, which saw a year-on-year decline of over 70% in wafer fabrication equipment (WFE) spending [5][7] - Improvements were noted in China and mature node spending, with some initial purchases related to high-bandwidth memory (HBM) for AI applications [5][6] Strategic Focus and Market Positioning - Lam has been focusing on strengthening its positions in foundry logic and DRAM to balance its business, recognizing the need to diversify beyond NAND [7][9] - The company is a significant player in etch and deposition, which are critical for building complex three-dimensional structures in semiconductor manufacturing [9][10] Growth Opportunities - Lam identified four $1 billion opportunities in its business, including gate-all-around nodes, advanced packaging, backside power delivery, and dry EUV resist [12][14] - The company has a unique position in the market, addressing only about 30% of the WFE, allowing for significant growth potential compared to competitors [13][14] NAND Market Outlook - While NAND demand is recovering, equipment spending remains low. The expectation is that 2025 will see a strong year characterized by technology upgrades rather than new capacity additions [16][17] - Lam's leadership in NAND remains a core strength, with ongoing improvements in revenue and profitability despite market challenges [16] Competitive Landscape - Lam faces competition in various applications, including cryo etch, but maintains a strong installed base that provides valuable learning and optimization opportunities [19][20] - The company has nearly 1,000 cryo chambers in high-volume production, which enhances its competitive position [20] China Market Insights - Lam believes that semiconductor spending in China is sustainable, driven by global semiconductor demand and regionalization trends [24][26] - The company is cautious with new players in the Chinese market, requiring advanced payments to mitigate risks [29] Services and Maintenance Innovations - The services business has grown significantly, now accounting for about 30% of revenue, with a focus on AI-driven analytics and automation to improve efficiency [37][38] - Lam is introducing collaborative robots (cobots) for maintenance tasks, enhancing tool availability and reducing labor costs [40][41] Future Trends and Innovations - AI is expected to drive significant growth in WFE, with estimates suggesting that a 1% increase in AI server penetration could yield $1 billion to $1.5 billion in WFE [68][70] - Lam is innovating in dry photoresist technology, which offers better control and productivity in EUV lithography, potentially replacing traditional methodologies [75][79] Capital Intensity and Economic Outlook - The company anticipates that capital intensity in the semiconductor industry will remain high, with a focus on productivity improvements to manage costs effectively [58][60] - Lam's restructuring and investment in manufacturing capabilities, particularly in Malaysia, are expected to enhance gross margins and operational resilience [63][66] Conclusion - Lam Research is well-positioned to capitalize on emerging opportunities in the semiconductor industry, with a strong focus on innovation, market diversification, and strategic growth in key segments such as foundry logic and DRAM. The company is navigating challenges in the NAND market while leveraging its competitive advantages and expanding its services business.

The semiconductor equipment giant sees sunnier days ahead. Lam's stock rose slightly after the news, but its stock has already rallied about 64% over the past 12 months and is only trading 3% below its all-time high. Do its upcoming stock split and fresh buyback plan make its stock worth buying? Why did investors turn bullish on Lam? Lam Research is one of the world's largest producers of wafer fabrication equipment (WFE) for manufacturing silicon wafers. It's widely considered one of the linchpins of the s ...

A month has gone by since the last earnings report for Lam Research (LRCX) . Shares have added about 6.3% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Lam Research due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Lam Research Q3 Earnings & Revenues Beat Estimates ...

In this video, I will be talking about stock splits and more specifically the upcoming Lam Research (LRCX 2.33%) split happening on Oct. 2, 2024, and whether or not investors should buy shares now. *Stock prices used were from the trading day of May 20, 2024. The video was published on May 21, 2024. Investors shouldn't worry about buying shares before the split but rather focus on the fundamentals. ...

Lam Research Corporation (NASDAQ:LRCX) JPMorgan's 52nd Global Technology, Media and Communications Conference May 21, 2024 10:50 AM ET Doug Bettinger - Chief Financial Officer Conference Call Participants Harlan Sur - JPMorgan Harlan Sur Great. Good morning, and again, welcome to the second day of JPMorgan's 52nd Annual Technology, Media and Communications Conference. My name is Harlan Sur. I'm the semiconductor and semiconductor capital equipment analyst for the firm. Very pleased to have Doug Bettinger, C ...

Summary of Lam Research Corporation Conference Call Company Overview - **Company**: Lam Research Corporation (NASDAQ:LRCX) - **Industry**: Semiconductor Capital Equipment - **Position**: Third largest semiconductor capital equipment company globally, with strong leadership in etch, deposition, and patterning technologies [1][3] Key Points and Arguments Financial Announcements - **Share Buyback**: Lam Research announced a new buyback authorization of $10 billion to be executed over an indeterminate timeframe, consistent with their plan to return 75% to 100% of free cash flow [4][7] - **Stock Split**: A 10-for-1 forward stock split was announced to enhance employee participation in stock ownership plans, particularly for junior employees and those based in Asia [5] Industry Trends - **Cyclical Downturn**: The semiconductor industry faced a downturn starting in the second half of 2022, with revenues down approximately 8% in 2023. Notably, NAND investment declined by about 75% year-over-year [9][10] - **WFE Spending**: Wafer Fabrication Equipment (WFE) spending is expected to be stronger in 2024, although memory investment remains muted, particularly in NAND [11][12] Market Dynamics - **Memory Market**: There are signs of improvement in pricing and profitability within the memory sector, with some customers reporting better conditions [12][13] - **Advanced Technology Transitions**: Significant transitions in foundry and logic technologies are occurring, including the adoption of 3-nanometer and 2-nanometer nodes driven by AI and networking demands [15][16] Growth Opportunities - **3D Architectures**: The shift towards 3D structures in NAND and foundry logic is creating opportunities for Lam, particularly in etch and deposition processes [22][24] - **Advanced Packaging**: Lam is positioned to benefit from the growth in advanced packaging, with expectations of $1 billion in revenues from this segment, including high bandwidth memory [30][31] Competitive Landscape - **China Domestic Competitors**: Lam is monitoring the growth of Chinese domestic equipment companies, which have seen significant growth due to restrictions on U.S. companies. However, Lam maintains that the best technology will prevail in the long term [43][44][45] Customer Support Business Group (CSBG) - **CSBG Growth**: The CSBG, which includes spares and service upgrades, has grown at a 14% CAGR over the past five years. The business model benefits from the longevity of equipment and the need for ongoing support [46][48] Financial Targets - **Operating Margins**: Lam aims to achieve operating margins of 33% to 34%. Current challenges include inflationary pressures and the need for revenue growth to support margin expansion [51][52] Additional Important Insights - **R&D Investments**: Lam is increasing R&D investments to maintain technological leadership and address evolving market demands [45][50] - **Customer Engagement**: There is a strong focus on customer evaluations of new technologies, particularly in EUV lithography and dry photoresist processes, which are expected to contribute to future growth [38][39] This summary encapsulates the key points discussed during the conference call, highlighting Lam Research's strategic initiatives, market conditions, and future outlook within the semiconductor capital equipment industry.

Lam Research (LRCX) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, LRCX broke through the 50-day moving average, which suggests a short-term bullish trend. The bullish case solidifies once investors consider LRCX's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 10 higher, while the consensus estimate has increased too. The 50-day simple moving average is one ...

The company is authorized to repurchase up to $10 billion of common stock. The new share repurchase authorization supplements the remaining balances from any prior authorizations. Repurchases may be made through both public market and private transactions and may include the use of derivative contracts and structured share repurchase agreements. This repurchase program has no termination date and may be suspended or discontinued at any time. The stock split is expected to be effective after market close on ...

Milan Markovic Investment Thesis I wrote on Lam Research (NASDAQ:LRCX) in early April, ahead of management reporting the third quarter of FY2024 earning results. The investment thesis I proposed then played out this quarter; I had noted, "I expect Lam to continue to outperform as the industry's wafer fabrication equipment spend, or WFE increases, to keep up with the appetite for advanced tech to keep up with the AI boom." And this quarter, management revised its 2024 wafer fab equipment market from $85 bill ...

FREMONT, Calif., May 16, 2024 /PRNewswire/ -- Lam Research Corporation (Nasdaq: LRCX) today announced that its Board of Directors has approved a quarterly dividend of $2.00 per share of common stock. The dividend payment will be made on July 10, 2024, to holders of record on June 18, 2024. Future dividend payments are subject to review and approval by the Board of Directors. About Lam Research: Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semico ...