Lam Research (NasdaqGS:LRCX) 2025 Conference December 02, 2025 12:55 PM ET Company ParticipantsTim Archer - President and CEODoug Bettinger - EVP and CFOConference Call ParticipantsTim Arcuri - Managing Director and Semiconductors and Semiconductor Equipment Equity Research AnalystTim ArcherI was supposed to say that, Tim? Sorry. The mic just came on.Tim ArcuriWe're going to start. Good morning, good afternoon. I'm Tim Arcuri. I'm the Semi and Semi-Equipment Analyst here at UBS. Very pleased to have Lam Res ...

Core Insights - Amtech Systems is experiencing significant growth in its AI packaging business, with a 26% sequential revenue increase to $19.6 million in Q3 fiscal 2025, driven by strong demand for AI infrastructure equipment [2][10] - Sales of AI infrastructure equipment surged fivefold year-over-year, constituting approximately 25% of Thermal Processing Solutions' revenues, indicating a robust demand outlook for AI-related products [3][10] - Despite the growth in AI, Amtech continues to face challenges in its mature node semiconductor business, which is a major headwind affecting overall growth [4][5] Financial Performance - The Zacks Consensus Estimate predicts a 24.4% decline in Amtech's revenues for fiscal 2025 due to ongoing weakness in the mature node semiconductor market [5][10] - Amtech's shares have increased by 37.5% year-to-date, outperforming the Zacks Semiconductor - General industry's growth of 34.2% [8] - The company trades at a forward price-to-sales ratio of 1.34X, significantly lower than the industry average of 14.66X, indicating potential undervaluation [12] Earnings Estimates - The Zacks Consensus Estimate for Amtech's fiscal 2025 earnings is a loss of six cents per share, while for fiscal 2026, earnings are projected at 15 cents per share, reflecting a year-over-year growth of 350% [15][16]

Core Insights - Shares of Lam Research (NASDAQ: LRCX) surged by 6.6%, reaching all-time highs, driven by strong demand in the semiconductor industry [1] - Lam's equipment is crucial for vertically stacking semiconductor materials, which is essential for both traditional memory and new chiplet-based logic chips [1] - Positive developments in the memory market and potential foundry agreements for Intel are expected to boost investments in Lam Research's machinery [4][6] Semiconductor Market Developments - OpenAI has signed a significant memory supply deal with Samsung and SK Hynix for its Stargate project, which could lead to the delivery of 900,000 wafers per month, representing 40% of the total DRAM industry [3][4] - This increased demand for memory is likely to drive further investments in DRAM and NAND flash, resulting in higher orders for Lam Research equipment [4] - Intel is reportedly in discussions with AMD for foundry services, which could lead to increased investment in Intel's manufacturing capabilities and subsequently more orders for Lam Research [5][6] AI and Semiconductor Investment Outlook - Lam Research is positioned as a key player in the AI sector, with its etch and deposition tools likely to be integral in the production of AI chips [7] - The bullish sentiment surrounding AI demand has positively impacted Lam's stock performance, especially following the recent OpenAI deal [7] - The potential for Intel to secure AMD as a foundry customer further enhances the investment outlook for Lam Research and the semiconductor industry as a whole [7]

Core Viewpoint - Lam Research Corporation (LRCX) reported strong third-quarter fiscal 2025 results, exceeding market expectations and reinforcing its position in the semiconductor fabrication equipment industry, leading to a 7% increase in share price since the earnings release on April 23 [1][6]. Financial Performance - Total revenues for Q3 reached $4.72 billion, marking a 24.5% year-over-year increase, driven by demand in memory and logic segments [6]. - Non-GAAP EPS was $1.04, surpassing analyst forecasts and reflecting a 33.5% improvement from the previous year [6][7]. - The non-GAAP operating margin improved by 210 basis points year-over-year to 32.8% in Q3 [13]. Market Position and Demand Drivers - Lam Research is benefiting from the increasing demand for AI and datacenter chips, which require advanced fabrication technologies [8]. - Shipments for gate-all-around nodes and advanced packaging exceeded $1 billion in 2024, with expectations to triple to over $3 billion by 2025 [9]. - The company is well-positioned to capitalize on the semiconductor spending cycle driven by AI investments [10]. Strategic Investments - Continued investment in R&D and product innovation, including the Cryo 3.0 technology, is enhancing Lam's competitive edge in semiconductor manufacturing [11]. - The Aether dry-resist solution has been adopted by multiple customers, indicating growing influence in the memory fabrication market [12]. - Expansion of manufacturing capabilities in Asia has improved cost efficiencies and responsiveness to customer demand [13]. NAND Market Recovery - Lam Research is poised to benefit from the recovery in the NAND flash market, with management expecting significant revenues from molybdenum and carbon gap fill solutions in 2025 [14][15]. Valuation - The stock trades at a forward P/E ratio of 18.1, lower than the sector average of 23.43 and major semiconductor peers like Broadcom, NVIDIA, and Marvell Technology [16][19]. - This discounted valuation aligns with the company's long-term growth potential [16]. Investment Recommendation - Given the solid financial performance, strategic focus on AI-driven growth, and attractive valuation, Lam Research is considered a compelling investment option at this time [20].