Lam Research expects accelerated demand from AI-focused logic foundry customers to drive robust growth in its systems segment during the second quarter. Advanced etch and deposition tools tailored for high-density transistor nodes have secured new orders from three leading logic foundries, with backlog in tool shipments up 35% sequentially. Management highlighted that 3D NAND deposition platforms, which account for roughly 40% of current systems revenue, will continue to benefit from AI-optimized memory designs, setting the stage for a potential double-digit increase in systems bookings compared to the prior quarter.

During the third quarter, CIBC Asset Management reduced its Lam Research position by 0.7%, selling 2,800 shares to bring its holding to 394,526 shares valued at about $52.8 million. In contrast, First Citizens Bank & Trust boosted its stake by 8.0%, acquiring 10,408 additional shares to hold 140,433 shares worth approximately $18.8 million. Other notable moves include TFR Capital’s 286.4% position increase and Norges Bank’s inaugural $1.9 billion investment during the period. Overall, institutional ownership remains high at 84.6%, underscoring strong buy-side confidence in Lam’s technology roadmap.

In the latest quarter, Lam Research reported revenue of $5.32 billion, a 27.7% year-over-year increase, and non-GAAP EPS of $1.26, surpassing consensus by $0.04. Return on equity reached 60.6%, reflecting strong operating leverage. The company declared a $0.26 per share quarterly dividend, representing a 22.9% payout ratio. Looking ahead, management reaffirmed full-year non-GAAP EPS guidance of approximately $3.71 and anticipates free cash flow conversion above 90% of net income, supported by disciplined capital spending.

Company insiders sold a total of 50,418 shares over the last quarter, including a 3.9% reduction by the CFO in mid-November. These dispositions coincide with elevated stock valuations but represent less than 0.5% of total shares outstanding. On the sell-side, 27 analysts maintain a buy rating and seven a hold rating, while recent target price revisions range from $181 to $260, reflecting a consensus view of moderate upside in the coming twelve months.