Financial Performance & Outlook - Lam Research's March quarter revenue reached $4.72 billion, surpassing the previous quarter's $4.38 billion[32] - The company's QMAR'25 earnings per share (non-GAAP) were $1.04, up from $0.91 in QDec'24[32] - Customer Support Business Group (CSBG) revenue for QMAR'25 was $1.68 billion, compared to $1.40 billion in QMar'24[40] - Lam Research anticipates June 2025 quarter revenue of $5.00 billion, with a potential variance of +/- $300 million[45] - The company projects a non-GAAP gross margin of 49.5% +/- 1% for the June 2025 quarter[45] - The non-GAAP earnings per share for the June 2025 quarter are projected at $1.20 +/- $0.10[46] Market & Strategy - The company estimates CY 2025 wafer fabrication equipment (WFE) spending to be in the ~$100 billion range[12] - Foundry accounted for 23% of system revenue in the March quarter[34] - Memory (DRAM and NVM) accounted for 43% + 20% = 63% of system revenue in the March quarter[34] - Taiwan and China each accounted for 24% + 31% = 55% of revenue by region[36]

Core Viewpoint - Lam Research (LRCX) reported quarterly earnings of $1.04 per share, exceeding the Zacks Consensus Estimate of $1 per share, and showing an increase from $0.78 per share a year ago, indicating a positive earnings surprise of 4% [1][2] Financial Performance - The company achieved revenues of $4.72 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.64%, and up from $3.79 billion in the same quarter last year [2] - Over the last four quarters, Lam Research has consistently exceeded consensus EPS estimates and revenue estimates [2] Stock Performance - Lam Research shares have declined approximately 12.1% since the beginning of the year, compared to a decline of 10.1% for the S&P 500 [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.96 on revenues of $4.54 billion, and for the current fiscal year, it is $3.73 on revenues of $17.73 billion [7] - The estimate revisions trend for Lam Research is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Electronics - Semiconductors industry, to which Lam Research belongs, is currently ranked in the top 16% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Financial Data and Key Metrics Changes - Revenue for the March quarter was $4.72 billion, an increase of 8% from the prior quarter [20] - Gross margin for the March quarter was 49%, improving from 47.5% in December [27] - Operating margin in March was 32.8%, up from 30.7% in December [27] - Diluted earnings per share for the March quarter was $1.04, with a diluted share count of approximately 1.29 billion shares [30] - The company expects revenue for the June quarter to be $5 billion plus or minus $300 million, with gross margin guidance of 49.5% plus or minus one percentage point [34] Business Line Data and Key Metrics Changes - Memory systems revenue accounted for 43% of total systems revenue, down from 50% in the prior quarter [21] - Foundry systems revenue represented 48% of total systems revenue, up from 35% in December, marking a new record in dollar terms [22] - Customer Support Business Group (CSBG) generated approximately $1.7 billion in revenue for March, down slightly from December but up 21% year-over-year [25] - Logic and Other systems revenue was 9% of total systems revenue, down from 15% in the prior quarter [24] Market Data and Key Metrics Changes - The China region accounted for 31% of total revenue, flat from the prior quarter [24] - Taiwan and Korea each represented 24% of revenue in March, with Taiwan achieving a new record level in dollar terms [24] - The company expects the Nonvolatile Memory segment to represent the biggest percentage growth in systems revenue for June [21] Company Strategy and Development Direction - The company aims to expand its served market faster than overall wafer fabrication equipment (WFE) growth, driven by increased semiconductor device complexity [9] - The focus is on delivering new products, advanced services, and digital transformation initiatives to achieve growth and profitability goals [9] - The company is positioned to benefit from technology inflections such as gate all around, backside power distribution, and advanced packaging [10] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the company's ability to outperform overall semiconductor industry growth in the coming years [18] - The current tariff and global economic environment is dynamic, but no meaningful changes to customer plans have been observed [8] - The company is closely monitoring the situation and believes its agile manufacturing and supply chain capabilities will mitigate tariff impacts [9] Other Important Information - The company signed a multi-year spares agreement with a large memory customer, enhancing value through assured component quality and availability [13] - Capital expenditures in March were $288 million, driven by investments in lab expansions and global manufacturing growth [32] - The company ended March with approximately 18,600 full-time employees, an increase of about 300 from the prior quarter [33] Q&A Session Summary Question: Sustainability of NAND upgrade cycle - Management sees a significant portion of the industry's bits still at the 128 level, indicating a strong upgrade opportunity moving forward [41] Question: Sustainability of Taiwan revenues - Management believes the strength in Taiwan is sustainable due to investments in new tooling and technology inflections [47][49] Question: Impact of tariffs on operations - Management has built a flexible manufacturing supply chain to mitigate tariff impacts, with operations in multiple countries [54][56] Question: Second half revenue expectations - Management indicated a first half weighted year due to lost business from restricted Chinese customers, impacting second half expectations [60][108] Question: Gross margin sustainability - Management expects variability in gross margins based on customer and product mix, indicating it may not sustain at current levels [78][80]

[Financial Performance Highlights](index=1&type=section&id=Financial%20Performance%20Highlights) [Key Financial Data Overview](index=1&type=section&id=Key%20Financial%20Data%20Overview) Lam Research Corporation reported strong financial results for the March 2025 quarter, with significant quarter-over-quarter growth in both U.S. GAAP and Non-GAAP metrics, including revenue, gross margin, operating income, and diluted EPS | U.S. GAAP | March 2025 | December 2024 | Change Q/Q | | :--- | :--- | :--- | :--- | | Revenue | $4,720 million | $4,376 million | +8% | | Gross margin as percentage of revenue | 49.0% | 47.4% | +160 bps | | Operating income as percentage of revenue | 33.1% | 30.5% | +260 bps | | Diluted EPS | $1.03 | $0.92 | +12% | | Non-GAAP | March 2025 | December 2024 | Change Q/Q | | :--- | :--- | :--- | :--- | | Revenue | $4,720 million | $4,376 million | +8% | | Gross margin as percentage of revenue | 49.0% | 47.5% | +150 bps | | Operating income as percentage of revenue | 32.8% | 30.7% | +210 bps | | Diluted EPS | $1.04 | $0.91 | +14% | [U.S. GAAP Financial Results](index=1&type=section&id=U.S.%20GAAP%20Financial%20Results) For the March 2025 quarter, Lam Research achieved $4,720 million in revenue, a gross margin of 49.0%, and diluted EPS of $1.03, showing an increase across all key metrics compared to the previous quarter | Metric | March 2025 Quarter | December 2024 Quarter | | :--- | :--- | :--- | | Revenue | $4,720 million | $4,376 million | | Gross Margin | $2,314 million (49.0%) | $2,073 million (47.4%) | | Operating Expenses | $752 million | $739 million | | Operating Income | 33.1% of revenue | 30.5% of revenue | | Net Income | $1,331 million | $1,191 million | | Diluted EPS | $1.03 | $0.92 | [Non-GAAP Financial Results](index=1&type=section&id=Non-GAAP%20Financial%20Results) Non-GAAP results for the March 2025 quarter also demonstrated growth, with gross margin at 49.0%, operating income at 32.8% of revenue, and diluted EPS of $1.04, reflecting improved operational efficiency | Metric | March 2025 Quarter (Non-GAAP) | December 2024 Quarter (Non-GAAP) | | :--- | :--- | :--- | | Gross Margin | $2,312 million (49.0%) | $2,077 million (47.5%) | | Operating Expenses | $763 million | $735 million | | Operating Income | 32.8% of revenue | 30.7% of revenue | | Net Income | $1,336 million | $1,175 million | | Diluted EPS | $1.04 | $0.91 | [Management's Strategic Commentary](index=1&type=section&id=Management's%20Strategic%20Commentary) The CEO highlighted Lam Research's compelling portfolio, driving opportunities for market expansion, share gains, and innovative services due to increasing deposition and etch intensity in advanced semiconductor production. Despite near-term tariff uncertainty, the company maintains a strong outlook and confidence in outperforming industry growth - Lam's portfolio is driving opportunities to expand addressable market, gain share, and deliver innovative services as deposition and etch intensity increases in advanced semiconductor production[6](index=6&type=chunk) - The company's outlook remains strong despite near-term tariff-related uncertainty, with high confidence in outperforming semiconductor industry growth[6](index=6&type=chunk) [Financial Position & Cash Flow](index=2&type=section&id=Financial%20Position%20%26%20Cash%20Flow) [Balance Sheet Overview](index=2&type=section&id=Balance%20Sheet%20Overview) Cash, cash equivalents, and restricted cash decreased to $5.5 billion at the end of March 2025, primarily due to capital return activities, debt payments, and capital expenditures, partially offset by operating cash generation | Metric | March 30, 2025 | December 29, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents, and restricted cash | $5.5 billion | $5.7 billion | - The decrease in cash balances was primarily due to cash deployed for capital return activities, principal payment on debt instruments, and capital expenditures, partially offset by cash generated from operating activities[8](index=8&type=chunk) [Deferred Revenue Details](index=2&type=section&id=Deferred%20Revenue%20Details) Deferred revenue slightly decreased to $2,011 million, while estimated future revenue from shipments to customers in Japan, where control transfers upon acceptance, significantly increased to $587 million | Metric | March 30, 2025 | December 29, 2024 | | :--- | :--- | :--- | | Deferred revenue | $2,011 million | $2,032 million | | Estimated future revenue from Japan shipments | $587 million | $453 million | - Deferred revenue balance does not include shipments to customers in Japan, which are classified as inventory until customer acceptance[9](index=9&type=chunk) [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) [Geographic Revenue Distribution](index=2&type=section&id=Geographic%20Revenue%20Distribution) China remained the largest revenue contributor at 31%, followed by Korea and Taiwan, both at 24%, indicating a strong presence in key Asian semiconductor markets | Region | Revenue Contribution | | :--- | :--- | | China | 31% | | Korea | 24% | | Taiwan | 24% | | Japan | 10% | | United States | 4% | | Southeast Asia | 4% | | Europe | 3% | [Revenue Disaggregation by Type](index=2&type=section&id=Revenue%20Disaggregation%20by%20Type) Systems revenue saw a significant increase quarter-over-quarter, reaching $3,035 million, while customer support-related revenue slightly decreased to $1,685 million | Revenue Type | March 30, 2025 | December 29, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Systems revenue | $3,035 million | $2,626 million | $2,396 million | | Customer support-related revenue and other | $1,685 million | $1,750 million | $1,398 million | | **Total Revenue** | **$4,720 million** | **$4,376 million** | **$3,794 million** | - Systems revenue includes sales of new leading-edge equipment in deposition, etch, clean, and other wafer fabrication markets[10](index=10&type=chunk) - Customer support-related revenue includes sales of customer service, spares, upgrades, and non-leading-edge equipment from the Reliant® product line[11](index=11&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) [Q2 2025 Financial Guidance](index=2&type=section&id=Q2%202025%20Financial%20Guidance) Lam Research provided optimistic guidance for the quarter ending June 29, 2025, projecting revenue of $5.00 billion (±$300 million) and diluted EPS of $1.20 (±$0.10) for both U.S. GAAP and Non-GAAP | Metric | U.S. GAAP Guidance (June 29, 2025) | Non-GAAP Guidance (June 29, 2025) | | :--- | :--- | :--- | | Revenue | $5.00 Billion +/- $300 Million | $5.00 Billion +/- $300 Million | | Gross margin as a percentage of revenue | 49.4% +/- 1% | 49.5% +/- 1% | | Operating income as a percentage of revenue | 33.4% +/- 1% | 33.5% +/- 1% | | Net income per diluted share | $1.20 +/- $0.10 | $1.20 +/- $0.10 | | Diluted share count | 1.28 Billion | 1.28 Billion | [Reconciling Items for Non-GAAP Guidance](index=2&type=section&id=Reconciling%20Items%20for%20Non-GAAP%20Guidance) Known reconciling items for the June 2025 quarter guidance primarily include amortization related to intangible assets acquired through business combinations and amortization of debt discounts, impacting gross margin, operating income, and net income per diluted share - Gross margin as a percentage of revenue reconciling item: amortization related to intangible assets acquired through business combinations, **$2.7 million**[12](index=12&type=chunk) - Operating income as a percentage of revenue reconciling item: amortization related to intangible assets acquired through business combinations, **$3.2 million**[17](index=17&type=chunk) - Net income per diluted share reconciling items: amortization related to intangible assets acquired through business combinations (**$3.2 million**), amortization of debt discounts (**$0.7 million**), and associated tax benefit for non-GAAP items (**$0.2 million**), totaling **$3.7 million**[17](index=17&type=chunk) [Non-GAAP Financial Information](index=3&type=section&id=Non-GAAP%20Financial%20Information) [Purpose and Use of Non-GAAP Measures](index=3&type=section&id=Purpose%20and%20Use%20of%20Non-GAAP%20Measures) Lam Research uses non-GAAP financial results to evaluate operating and financial performance, believing they are useful for investors to analyze business trends, compare performance, and view results from management's perspective. Non-GAAP adjustments exclude items like amortization of acquired intangibles, deferred compensation effects, and note discounts - Non-GAAP results exclude amortization related to intangible assets acquired through business combinations, effects of elective deferred compensation-related assets and liabilities, amortization of note discounts, and the net income tax effect of non-GAAP items[13](index=13&type=chunk) - Management uses non-GAAP metrics to evaluate operating and financial results, believing they are useful for investors to analyze business trends, compare performance, and gain management's perspective[14](index=14&type=chunk) [Non-GAAP Financial Summary](index=7&type=section&id=Non-GAAP%20Financial%20Summary) The non-GAAP financial summary for the March 2025 quarter shows revenue of $4,720 million, gross margin of 49.0%, operating income of 32.8% of revenue, and diluted EPS of $1.04, reflecting consistent performance with the GAAP highlights | Metric | March 30, 2025 (Non-GAAP) | December 29, 2024 (Non-GAAP) | | :--- | :--- | :--- | | Revenue | $4,720 million | $4,376 million | | Gross margin | $2,312 million | $2,077 million | | Gross margin as percentage of revenue | 49.0% | 47.5% | | Operating expenses | $763 million | $735 million | | Operating income | $1,549 million | $1,343 million | | Operating income as a percentage of revenue | 32.8% | 30.7% | | Net income | $1,336 million | $1,175 million | | Net income per diluted share | $1.04 | $0.91 | | Shares used in per share calculation - diluted | 1,288,100 | 1,291,469 | [Reconciliation of U.S. GAAP to Non-GAAP](index=7&type=section&id=Reconciliation%20of%20U.S.%20GAAP%20to%20Non-GAAP) [Net Income Reconciliation](index=7&type=section&id=Net%20Income%20Reconciliation) The reconciliation from U.S. GAAP net income to Non-GAAP net income primarily adjusts for amortization of acquired intangibles, elective deferred compensation valuation changes, amortization of note discounts, and related tax effects | Item | March 30, 2025 | December 29, 2024 | | :--- | :--- | :--- | | U.S. GAAP net income | $1,331 million | $1,191 million | | Amortization related to intangible assets (COGS) | $2,687 | $2,817 | | EDC related liability valuation (decrease) increase (COGS) | $(3,982) | $1,353 | | EDC related liability valuation (decrease) increase (R&D) | $(7,168) | $2,432 | | Amortization related to intangible assets (SG&A) | $538 | $538 | | EDC related liability valuation (decrease) increase (SG&A) | $(4,779) | $1,626 | | Amortization of note discounts | $759 | $772 | | Loss (gain) on EDC related asset | $16,903 | $(4,502) | | Net income tax expense (benefit) on non-GAAP items | $381 | $(276) | | Income tax benefit from a change in tax law | — | $(20,778) | | **Non-GAAP net income** | **$1,336 million** | **$1,175 million** | | Non-GAAP net income per diluted share | $1.04 | $0.91 | | U.S. GAAP net income per diluted share | $1.03 | $0.92 | [Gross Margin, Operating Expenses, and Operating Income Reconciliation](index=8&type=section&id=Gross%20Margin%2C%20Operating%20Expenses%2C%20and%20Operating%20Income%20Reconciliation) Reconciliations for gross margin, operating expenses, and operating income primarily adjust for amortization of acquired intangible assets and elective deferred compensation related liability valuation changes | Item | March 30, 2025 | December 29, 2024 | | :--- | :--- | :--- | | U.S. GAAP gross margin | $2,314 million | $2,073 million | | Amortization related to intangible assets | $2,687 | $2,817 | | EDC related liability valuation (decrease) increase | $(3,982) | $1,353 | | **Non-GAAP gross margin** | **$2,312 million** | **$2,077 million** | | U.S. GAAP gross margin as a percentage of revenue | 49.0% | 47.4% | | Non-GAAP gross margin as a percentage of revenue | 49.0% | 47.5% | | U.S. GAAP operating expenses | $752 million | $739 million | | Amortization related to intangible assets | $(538) | $(538) | | EDC related liability valuation decrease (increase) | $11,947 | $(4,058) | | **Non-GAAP operating expenses** | **$763 million** | **$735 million** | | U.S. GAAP operating income | $1,562 million | $1,334 million | | **Non-GAAP operating income** | **$1,549 million** | **$1,343 million** | | U.S. GAAP operating income as percent of revenue | 33.1% | 30.5% | | Non-GAAP operating income as a percent of revenue | 32.8% | 30.7% | [Corporate Information and Disclosures](index=3&type=section&id=Corporate%20Information%20and%20Disclosures) [Company Overview](index=3&type=section&id=Company%20Overview) Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry, headquartered in Fremont, California, and recognized as a FORTUNE 500® company - Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry, enabling customers to build smaller and better performing devices[16](index=16&type=chunk) - The company combines superior systems engineering, technology leadership, and a strong values-based culture with a commitment to customers[16](index=16&type=chunk) [Forward-Looking Statements Disclaimer](index=3&type=section&id=Forward-Looking%20Statements%20Disclaimer) The press release contains forward-looking statements subject to risks and uncertainties, including economic conditions, trade regulations, supply chain disruptions, and geopolitical tensions, which could cause actual results to differ materially from expectations - Forward-looking statements relate to future financial results, market opportunities, industry trends, and the company's ability to address tariff-related uncertainty[15](index=15&type=chunk) - Factors that may affect these statements include business, economic, political, and regulatory conditions, customer and competitor actions, trade regulations, supply chain issues, and natural disasters[15](index=15&type=chunk) - The company undertakes no obligation to update the information or statements made in the release[15](index=15&type=chunk) [Investor Relations Contact](index=8&type=section&id=Investor%20Relations%20Contact) Investor inquiries can be directed to Ram Ganesh, Investor Relations, via phone or email - Contact for Investor Relations: Ram Ganesh, phone: 510-572-1615, e-mail: investor.relations@lamresearch.com[30](index=30&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Statements of Operations](index=4&type=section&id=Statements%20of%20Operations) The condensed consolidated statements of operations show a significant increase in revenue and net income for both the three and nine months ended March 30, 2025, compared to prior periods, reflecting strong operational performance | Metric | Three Months Ended March 30, 2025 | Three Months Ended December 29, 2024 | Nine Months Ended March 30, 2025 | | :--- | :--- | :--- | :--- | | Revenue | $4,720 million | $4,376 million | $13,264 million | | Gross margin | $2,314 million | $2,073 million | $6,389 million | | Gross margin as a percent of revenue | 49.0% | 47.4% | 48.2% | | Operating income | $1,562 million | $1,334 million | $4,160 million | | Operating income as a percent of revenue | 33.1% | 30.5% | 31.4% | | Net income | $1,331 million | $1,191 million | $3,638 million | | Diluted EPS | $1.03 | $0.92 | $2.81 | | Cash dividend declared per common share | $0.23 | $0.23 | $0.69 | [Balance Sheets](index=5&type=section&id=Balance%20Sheets) The balance sheet indicates a slight decrease in cash and cash equivalents but an overall increase in total assets and stockholders' equity as of March 30, 2025, compared to the previous quarter and fiscal year-end | Asset/Liability | March 30, 2025 | December 29, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $5,451 million | $5,665 million | $5,848 million | | Total current assets | $13,460 million | $13,613 million | $12,883 million | | Total assets | $19,968 million | $19,840 million | $18,745 million | | Total current liabilities | $5,490 million | $5,350 million | $4,338 million | | Total liabilities | $10,457 million | $11,032 million | $10,205 million | | Stockholders' equity | $9,511 million | $8,808 million | $8,539 million | - Common shares issued and outstanding decreased from **1,284,956** as of December 29, 2024, to **1,282,957** as of March 30, 2025[22](index=22&type=chunk) [Statements of Cash Flows](index=6&type=section&id=Statements%20of%20Cash%20Flows) Operating activities generated $1,309 million in cash for the March 2025 quarter, a substantial increase from the previous quarter, while significant cash was used for financing activities, primarily debt payments and treasury stock purchases | Cash Flow Activity | Three Months Ended March 30, 2025 | Three Months Ended December 29, 2024 | Nine Months Ended March 30, 2025 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $1,309 million | $742 million | $3,619 million | | Net cash used for investing activities | $(293 million) | $(175 million) | $(579 million) | | Net cash used for financing activities | $(1,233 million) | $(935 million) | $(3,427 million) | | Net change in cash, cash equivalents, and restricted cash | $(214 million) | $(395 million) | $(388 million) | | Cash, cash equivalents, and restricted cash at end of period | $5,463 million | $5,677 million | $5,463 million | - Principal payments on debt and finance lease obligations amounted to **$504 million** in the March 2025 quarter[24](index=24&type=chunk) - Treasury stock purchases, including excise tax payments, totaled **$435 million** for the quarter[24](index=24&type=chunk)

FREMONT, Calif., April 23, 2025 /PRNewswire/ -- Lam Research Corporation (the "Company," "Lam," "Lam Research") today announced financial results for the quarter ended March 30, 2025 (the "March 2025 quarter").Highlights for the March 2025 quarter were as follows: Revenue of $4.72 billion. U.S. GAAP gross margin of 49.0%, U.S. GAAP operating income as a percentage of revenue of 33.1%, and U.S. GAAP diluted EPS of $1.03. Non-GAAP gross margin of 49.0%, non-GAAP operating income as a percentage of revenue of ...

Lam Research Corporation (LRCX) is scheduled to release its third-quarter fiscal 2025 results on April 23. The Zacks Consensus Estimate for earnings is pegged at $1 per share, calling for growth of 28.2% from the figure reported in the year-ago quarter. The earnings figure has been revised a penny upward over the past 60 days. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Image Source: Zacks Investment Research For the third quarter of fiscal 2025, the company expects revenues of ...

Core Insights - Lam Research (LRCX) has consistently beaten earnings estimates and is well-positioned for future earnings reports [1][5] - The company reported earnings of $0.91 per share for the most recent quarter, exceeding the expected $0.87, resulting in a surprise of 4.60% [2] - For the previous quarter, Lam Research reported $0.86 per share against an expectation of $0.80, achieving a surprise of 7.50% [2] Earnings Performance - The average surprise for Lam Research over the last two quarters was 6.05% [1] - The company has a positive Earnings ESP of +0.15%, indicating recent bullish sentiment among analysts regarding its earnings prospects [8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat [5][8] Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6] - The Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7] - A negative Earnings ESP reduces predictive power but does not necessarily indicate an earnings miss [9]

Core Insights - The semiconductor industry is identified as a major driver of the stock market, influencing investor sentiment and market trends [1]. Industry Summary - Semiconductors are at the forefront of investor focus, research, and data, highlighting their critical role in the market [1]. - The operational mechanisms of semiconductor devices involve multiple components, indicating a complex ecosystem that supports their functionality [1].

Core Viewpoint - Lam Research Corp. has donated a multi-chamber semiconductor etching system to the Marvell Nanofabrication Laboratory at UC Berkeley to enhance research and development for next-generation chip technologies [1][2]. Group 1: Donation and Collaboration - The donation provides UC Berkeley researchers access to advanced etching technology for fabricating nanoscale semiconductor devices, which are essential for various applications including consumer electronics, AI, and quantum computing [1][2]. - This contribution is part of Lam's ongoing collaboration with UC Berkeley, aimed at expanding research and educational activities in nanoscale science and engineering [2][4]. Group 2: Technology and Capabilities - The donated system integrates Lam's Kiyo® conductor and metal etch, Flex® dielectric etch, and Syndion® GP deep reactive ion etch chambers on a Lam 2300® platform, capable of etching a wide range of materials for next-generation semiconductor devices [3]. - Lam's etch technologies will facilitate new fabrication processes for integrated optical solutions, which are critical for advancements in photonic integrated circuits and optical interconnects [4]. Group 3: Institutional Impact - UC Berkeley's College of Engineering acknowledges Lam's contributions, emphasizing the access to wafer-processing capabilities that are typically found only in sophisticated semiconductor manufacturing facilities [5]. - Lam Research is a founding member of the Berkeley Emerging Technologies Research Center and has established an endowed chair in semiconductor processing at UC Berkeley [5].

Core Viewpoint - The semiconductor manufacturing supply chain is experiencing growth driven by AI and high-performance computing demand, benefiting companies like Lam Research and ACM Research, which operate at different scales and strategic exposures [1] Lam Research (LRCX) - Lam Research is a mature leader in chip equipment, particularly in etch and deposition technology, crucial for high-bandwidth memory and advanced packaging for AI workloads [2] - In 2024, Lam Research's shipments for gate-all-around nodes and advanced packaging surpassed $1 billion, with expectations to triple to over $3 billion by 2025 [3] - For Q2 fiscal 2025, Lam Research reported revenues of $4.38 billion, a 16.4% year-over-year increase, and EPS of 91 cents, reflecting a 21% increase [4] - The company faces challenges from U.S.-China trade tensions, with China accounting for 31% of Q2 fiscal 2025 revenues, down from 37% in the previous quarter, and $700 million in expected sales from restricted Chinese customers not materializing in 2025 [5] - Declining demand for mature-node semiconductor equipment is impacting Lam Research's foundry business, with foundry revenues decreasing from 41% to 35% of system sales [6] ACM Research (ACMR) - ACM Research is a smaller semiconductor equipment provider focused on advanced cleaning, plating, and thermal processing tools, with over 99% of its 2024 revenues coming from China [7] - The company estimates its Serviceable Available Market to be approximately $18 billion, indicating significant long-term growth potential [8] - ACM Research has achieved a CAGR of 54.6% over the past seven years, with 2024 revenues increasing by 40% year-over-year and non-GAAP EPS rising by 38.7% [9] - The company is highly dependent on China, making it vulnerable to geopolitical shifts and changes in China's chip investment strategy [10] - ACM Research is reinvesting in R&D to expand its technology suite beyond cleaning and plating, which could enhance its growth rate if successful [11] Stock Performance and Valuation - ACM Research shares have returned 22% year-to-date, while Lam Research shares have declined by 8% [12] - ACM Research is trading at a forward earnings multiple of 8.20X, significantly below its three-year median of 17.74X, while Lam Research's forward earnings multiple is at 17.55X, lower than its median of 20.77X [13] - Analysts are more optimistic about ACM Research, with EPS estimates for 2025 revised upward by 19.4%, compared to a mere 1% increase for Lam Research [15] Conclusion - ACM Research appears to be a more compelling investment option due to its rapid revenue growth, increasing market share in China, attractive valuation, and favorable estimate revisions [18]