Core Thesis - Lam Research Corporation (LRCX) is positioned for growth driven by strong demand in AI infrastructure and advanced packaging applications, with a bullish outlook on its stock performance [1][2][7] Financial Performance - LRCX reported Q2 fiscal 2026 revenue of $5.34 billion, a 22% increase year-over-year, marking the tenth consecutive quarter of growth despite a reduction in China's revenue contribution from 43% to 35% [3] - Non-GAAP EPS increased by 39.6% year-over-year to $1.27, with gross and operating margins at 49.7% and 34.3% respectively, despite some sequential contraction [4] Business Segments - The foundry segment accounted for 59% of system revenue, driven by TSMC's expansion into advanced nodes, while DRAM revenue increased, offsetting a decline in NAND revenue to 11% [4] - The Customer Support Business Group generated $1.99 billion in revenue, indicating strong recurring service demand [4] Technological Positioning - Lam Research holds a leadership position in key semiconductor technologies, including gate-all-around transistors and high-bandwidth memory (HBM4), supported by advanced tools that provide a comprehensive presence from wafer preparation to final assembly [5] - The company is expected to benefit from multi-year growth as semiconductor architectures evolve [5] Capital Management - Lam maintained aggressive capital returns, repurchasing $2.44 billion in stock and paying $619.5 million in dividends, while holding a flexible balance sheet with $6.2 billion in cash [5] Future Outlook - Forward guidance for Q3 FY26 anticipates revenue of $5.7 billion and EPS of $1.35, with full-year wafer fabrication equipment spending projected to reach $13.5 billion [6] - The combination of market share, advanced technology, and strong cash generation positions Lam as a compelling investment opportunity, particularly in AI-driven semiconductor demand [6][7]