Lam Research on Wednesday reported quarterly revenue above Wall Street expectations as chipmakers ordered more equipment used to produce semiconductors for artificial intelligence applications.
Lam Research supplies equipment to chipmakers whose businesses have been hit in 2023 by a glut of certain semiconductors used in personal computers and smartphones. However, the surge in demand for AI chips has spurred the industry’s growth.
Some of these electronics categories are showing signs of recovery even as the artificial intelligence boom prompts chipmakers to build up-to-date manufacturing capacity, providing cascading growth for suppliers like Lam Research.
“As our customers address the challenges of scaling semiconductors to meet the power and speed requirements needed to power their AI transformations, Lam is strengthening its leadership position and is well-positioned for significant future opportunities,” CEO Tim Archer said in a statement .
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The company expects revenue for the current quarter ending June 30 of $3.8 billion plus or minus $300 million, compared with analysts’ average estimate of $3.77 billion, according to LSEG data.
Shares of the Fremont, California-based company fell slightly after the bell.
Lam reported revenue of $3.79 billion in the three months ended March 31, compared with market estimates of $3.72 billion.
Excluding items, the company reported earnings of $7.79 per share compared to estimates of $7.30 per share.
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