Lam Research is poised to deliver a robust second quarter performance driven by accelerating demand from AI-focused foundry customers. Advanced plasma etch and thin-film deposition systems have secured new orders totaling 120 units from leading logic chip manufacturers, a 35% increase year-over-year. Management highlighted that next-generation high-aspect-ratio etch tools account for more than half of the incoming backlog, underpinning a projected systems revenue growth rate of approximately 25% sequentially. This momentum reflects chipmakers’ push to expand AI compute capacity and positions Lam Research to exceed consensus systems bookings expectations in the current quarter.

In the third quarter, key institutional investors executed portfolio adjustments that slightly altered their exposure to Lam Research. CIBC Asset Management trimmed its position by 0.7%, selling 2,800 shares and ending the period with 394,526 shares, while First Citizens Bank & Trust added 10,408 shares, raising its stake to 140,433 shares. Notably, TFR Capital boosted its holding by 286.4%, acquiring 5,980 additional shares, and Norges Bank initiated a new position worth nearly 1.9 billion. Combined, hedge funds and other institutions continue to own approximately 84.6% of total shares outstanding, underscoring sustained confidence among large asset managers.

Company insiders have reduced their holdings over the last quarter, selling a total of 50,418 shares. Director Bethany Mayer sold 1,298 shares, representing a 44% cut in her stake, while CFO Douglas Bettinger executed a sale of 40,080 shares, reducing his ownership by 3.9%. Concurrently, the board approved a quarterly dividend of 0.26 per share, marking an annualized yield near 0.5% and a payout ratio of 22.9%. These actions signal management’s focus on returning cash to shareholders while maintaining the flexibility to fund capital expenditures tied to the rollout of advanced etch and deposition platforms.