Lam Research forecasts strong quarterly results on chipmaking tool demand

Jan 28 (Reuters) - Lam Research ⁠forecast third-quarter ⁠revenue ‍above Wall Street expectations on Wednesday, as enterprises ramped up orders of its chipmaking tools.

Shares ‍of the company rose 3.2% in extended trading following ​the results.

Rising demand for advanced AI applications has boosted product orders ​for companies such as Lam Research, which makes machines and devices capable of manufacturing powerful semiconductors that power such applications.

Lam's strong exposure ​to the memory chip industry could also help it benefit from the booming demand for high bandwidth ​memory, as AI infrastructure requires massive amounts of data to process machine learning ‌applications.

"Entering 2026, our expanding product and services portfolio is enabling the market's transition to smaller, more ​complex three-dimensional devices and packages," ⁠CEO Tim Archer said.

The company's shares more than doubled last year as it rode the ‌AI wave, while investors bet on its long-term prospects as a key supplier to the highly lucrative semiconductor industry.

Lam forecast ‌third-quarter revenue of $5.7 billion, plus or minus $300 million, compared with estimates of $5.34 ‌billion, according to data compiled by LSEG.

The company projected adjusted earnings of $1.35 per share for the third quarter, plus or minus ‍10 cents, while analysts expect profit of $1.20 per share.

For the second quarter, its revenue came ⁠in at $5.34 billion, beating estimates of $5.26 billion.

Lam earned $1.27 per share on an adjusted basis during the quarter, compared with estimates of profit of $1.17 per share.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shreya Biswas)

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