Lam Research Posts $5.8B Record Quarter as Shares Climb 326%
LRCX•Lam Research’s third consecutive record quarter delivered $5.8B revenue (up 24% YoY) and $2.1B in support services revenue, bolstered by escalating AI chip demand. Shares have surged 326% over the past year, trading at a 70.6 P/E and 21.9 P/S, pricing in extended AI-driven growth.
1. Record Quarterly Performance
Lam Research reported $5.8B in revenue for the quarter, marking a 24% year-over-year increase and a third consecutive record. The surge was driven by heightened demand for AI chip deposition and etch equipment.
2. Premium Valuation Metrics
Shares have climbed 326% over the past year, and the stock trades at a 70.6 P/E ratio and 21.9 price-to-sales ratio. Investors are paying up for exposure to ongoing AI build-out and high-margin equipment sales.
3. Customer Support Business Growth
The Customer Support Business Group delivered a record $2.1B in quarterly revenue by servicing and upgrading over 100,000 installed chambers worldwide. This recurring revenue stream reinforces margins and cash flow stability.
4. Financial Strength and Expansion
With debt at just 0.8% of market value and a cash-rich balance sheet, Lam Research is financing a second manufacturing facility in Malaysia. The low leverage position supports further investment in capacity and technology development.
