The company forecasts stronger first-quarter sales as leading semiconductor manufacturers expand advanced chip production.
Lam Research has issued a stronger-than-expected outlook for the first quarter of fiscal 2027, supported by robust demand for semiconductor manufacturing equipment as investments in artificial intelligence (AI) infrastructure continue to accelerate.
The company expects first-quarter revenue of $8.10 billion, plus or minus $400 million, well above analysts’ consensus estimate of $7.09 billion. It also forecast adjusted earnings of $2.15 per share, plus or minus $0.15, compared with Wall Street’s expectation of $1.83 per share. The optimistic guidance pushed Lam Research shares up about 6 per cent in after-hours trading.
The Fremont, California-based company supplies deposition, etch, and wafer cleaning equipment used to manufacture advanced semiconductor chips. These tools are essential for building the complex layers and microscopic circuit patterns required for AI processors, high-performance computing chips, and advanced memory devices.
Demand for Lam’s products has been boosted by increased capital spending from major technology companies investing heavily in AI infrastructure. As semiconductor manufacturers expand production capacity to meet growing AI chip demand, equipment suppliers such as Lam Research are seeing stronger order flows.
For the fourth quarter ended June 28, Lam reported revenue of $6.72 billion, exceeding analysts’ estimate of $6.67 billion. Adjusted earnings came in at $1.82 per share, also beating the consensus forecast of $1.68 per share.
The company’s customer base includes leading chipmakers such as Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics, both of which continue to invest in advanced manufacturing technologies.
Lam Research’s latest results and guidance highlight the sustained momentum in the semiconductor equipment market, with AI emerging as a key driver of industry investment. As chipmakers ramp up production of advanced processors and memory devices, the company expects demand for its manufacturing equipment to remain strong in the coming quarters.
