Lam Research(LRCX) MarketBeat·2024-11-12 12:46Core Insights - Lam Research has experienced unrelenting demand for artificial intelligence (AI), leading to a second consecutive quarter of double-digit revenue growth in fiscal Q1 2025 [2][5] - The company reported earnings per share (EPS) of 86 cents, exceeding consensus estimates by 5 cents, and revenues of 4.06 billion [6][5] - Lam Research's broader service offerings and recovery in NAND spending, driven by AI demand, are key factors expected to drive growth beyond the wafer fabrication equipment (WFE) market in 2025 [7][8] Financial Performance - Lam Research's fiscal Q1 2025 results showed a significant revenue increase, with a 19.7% year-over-year growth to 4 billion and $4.6 billion, aligning with market expectations [6] Market Position and Competition - Lam Research's machines are essential in the semiconductor production process, performing critical functions such as etching and chemical mechanical planarization, similar to ASML's lithography machines [3][2] - The financial performance of Lam Research is closely linked to that of ASML, especially following ASML's disappointing Q3 2024 earnings report [4][5] Strategic Outlook - The company anticipates benefiting from technology transitions, particularly the shift from Tungsten to Molybdenum, which will create additional opportunities [8] - Lam Research expects its SABRE 3D advanced packaging revenue to more than double in 2024 as it gains market share heading into 2025 [8] Geopolitical Considerations - In fiscal Q1 2025, 37% of Lam Research's total revenue came from China, raising concerns about potential restrictions on sales to China with the upcoming Trump Administration [9][11] - The company, along with other semiconductor equipment manufacturers, received inquiries from the House Select Committee regarding their business dealings with China [10][11]