Lam Research is poised to benefit from accelerating AI-driven foundry investments, with advanced etch and deposition tools gaining significant traction at leading logic and memory manufacturers. Management highlighted that bookings for next-generation plasma etch systems accounted for over 40% of its current order backlog, up from 28% in the prior quarter. Capital expenditures at major foundries dedicated to AI chip nodes are projected to rise by more than 15% year-over-year, which could translate into a mid-teens percentage increase in Lam Research’s Systems revenues in the June quarter. Analysts emphasize that the strength in advanced-node patterning tools will offset near-term cyclical headwinds in mature-node segments, underpinning a consensus estimate of a double-digit revenue growth rate for the period.

In its latest SEC filing, CIBC Asset Management reduced its position in Lam Research by 2,800 shares, representing a 0.7% stake decrease during the third quarter. Post-transaction, CIBC holds 394,526 shares, valued at approximately $52.8 million at quarter-end. This sale contrasts with other institutional activity: Capital Investment Counsel initiated a new $2.24 million position, while TFR Capital boosted its stake by 286.4%, adding 5,980 shares. Overall, institutional ownership remains elevated at 84.6%, signaling continued confidence among hedge funds and asset managers in Lam Research’s long-term growth prospects driven by semiconductor equipment demand.