Key Takeaways LRCX's Systems revenues are likely to rise sharply in Q2, driven by strong demand from its foundry clients.LRCX is benefiting from AI and HPC investments that boost demand for advanced etch and deposition tools.LRCX's Aether EUV and Akara etch technologies are gaining traction for next-generation chip nodes.Lam Research Corporation (LRCX) is scheduled to release its second-quarter fiscal 2026 earnings on Jan. 28. The chip-making tool provider looks well-positioned for another strong quarter, s ...

Key Takeaways LRCX posted a 48.3% YoY jump in Systems revenues to $3.55B, with foundry sales rising to 60% of the total.LRCX gains from AI and HPC-led investments, supported by its strength in critical etch and deposition tools.LRCX is seeing traction for Aether EUV and Akara systems, with FY26 Systems revenues projected at $14.07B.Lam Research Corporation (LRCX) is seeing growing support from artificial intelligence (AI)-driven demand in the foundry market, which is becoming a key driver of its systems rev ...

Core Insights - Lam Research Corporation's Systems revenues increased by 48.3% year over year to $3.55 billion, primarily driven by the foundry business, which accounted for 60% of total Systems sales, up from 52% in the previous quarter [1][10] Group 1: Business Performance - The foundry business is benefiting from rising investments in advanced chip manufacturing, particularly for AI and high-performance computing applications [2] - New technologies such as the Aether dry resist EUV patterning solution and the Akara conductor etch system are gaining traction with leading-edge chipmakers, enhancing pattern precision and process efficiency for next-generation transistor production [3][4] - Analysts project that Systems revenues for fiscal 2026 will reach $13.83 billion, indicating a year-over-year growth of 20.4% [5] Group 2: Competitive Landscape - Major competitors in the semiconductor equipment market include Applied Materials, which competes directly in deposition and etch technologies, and KLA Corporation, which specializes in process control and inspection tools [6][7] Group 3: Financial Metrics - Lam Research's shares have surged 123.8% year to date, outperforming the Zacks Electronics – Semiconductors industry's gain of 41% [8] - The company trades at a forward price-to-earnings ratio of 32.37, lower than the industry's average of 37.17 [12] - The Zacks Consensus Estimate for fiscal 2026 and 2027 earnings implies year-over-year increases of approximately 14% and 15.2%, respectively, with upward revisions in the past 30 days [15]