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Overview
Lam Research designs and builds equipment and provides services for making computer chips. Its products are used in front-end wafer processing, the steps that form active components and wiring on silicon wafers. Core systems cover thin film deposition, plasma etch, and wafer cleaning, which together create transistors and interconnects on a wafer. Lam Research sells new and refurbished equipment and earns revenue from service contracts and spare parts, supporting customers with maintenance and ongoing needs. Compared with competitors, the company combines a broad suite of front-end processing tools with global service offerings and a strong base among leading chip manufacturers such as IDMs, foundries, and memory suppliers. Its goal is to help semiconductor makers produce chips efficiently and reliably by supplying the equipment and services needed for wafer fabrication.
About Lam Research
Industries
Hardware
Industrial & Manufacturing
Company Size
10,001+
Company Stage
IPO
Headquarters
Fremont, California
Founded
1980
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Simplify's Take
What believers are saying
- Lam guided September 2026 revenue to $8.1 billion, over 20% sequential growth.
- July 2026 gross margin hit 52%, the strongest level in twenty years.
- August 2026 Oregon lab break ground starts a $3 billion expansion through 2028.
What critics are saying
- U.S. export controls block Lam from Hua Hong and restricted Chinese customers in 2026.
- China wafer-fab spending stays only slightly up while outside-China demand accelerates faster.
- Applied Materials and KLA intensify DRAM and advanced-node competition, squeezing share gains.
What makes Lam Research unique
- Akara conductor etch and VECTOR deposition target leading-edge DRAM and foundry transitions.
- Lam's close-to-customer lab model ties Oregon, Asia, and Europe to customer co-development.
- Customer Support Business Group delivered nearly $2.5 billion, extending installed-base monetization.
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Funding
Total Funding
$42.2M
Above
Industry Average
Funded Over
3 Rounds
Stock Price
Growth & Insights and Company News
6 month growth
↑ 0%1 year growth
↓ -1%2 year growth
↓ -1%Applied Materials and Lam Research are key players in the wafer fabrication equipment market, both benefiting from AI-driven semiconductor demand. Applied Materials serves a broader portfolio including logic, DRAM, HBM, NAND, and advanced packaging, whilst Lam Research focuses on foundry, DRAM, NAND, and NVM with concentration on etching and deposition. Applied Materials expects leading-edge foundry-logic, DRAM, and advanced packaging to represent around 80% of WFE growth in 2026-2027. Third-quarter fiscal 2026 Semiconductor Systems revenues rose 27% year over year, with fourth-quarter guidance at $7.9 billion, up 62% year over year. DRAM revenues increased 52% year over year to record levels in Q3. Advanced packaging revenues are expected to grow more than 70% in 2026. Applied Global Services reached record revenues of $1.78 billion, up 22% year over year.
Lam Research has increased its quarterly dividend by 26.9%, raising it from $0.26 to $0.33 per share. The dividend will be paid on 14 October 2026 to shareholders of record on 23 September 2026. The chip equipment maker reported strong June quarter results, with revenue rising 30% year-on-year to a record $6.72 billion and adjusted earnings per share increasing 34% to $1.82. The company's shares have surged 186% over the past year, driven by rising demand for AI chips and semiconductor products. Despite the strong dividend increase, Lam Research's payout ratio remains modest at 17.75%. The company has raised its dividend for 12 consecutive years. Its forward yield stands at approximately 0.32%.
Memory chip prices have surged 500% in one year due to strong AI data centre demand, and Deloitte estimates DRAM prices could quadruple by 2026. The supply shortage may persist until 2029 or 2030. Lam Research, which generates 46% of revenue from memory equipment sales, stands to benefit significantly. The company reported 26% revenue growth to $23.2 billion in fiscal 2026, with earnings per share up 39% to $5.76. Lam projects 52% revenue growth in the current quarter to $8.1 billion, with earnings per share expected to jump 71% to $2.15. Memory manufacturers' combined capital expenditure could reach $146 billion by 2027, up from $58 billion in 2025. Analysts forecast Lam's earnings per share will increase 62% in fiscal 2027 to $9.46. The stock has risen 76% in 2026 but dropped 30% from its June peak.
Lam Research will invest $3 billion over several years to expand its global research and development lab network, chief executive Tim Archer told Jon Fortt. The chip equipment maker will break ground in Oregon and other sites across the US, Asia, and Europe. The expansion aims to meet AI-driven demand, particularly for high-bandwidth memory. Archer said AI is disrupting the memory sector's traditional boom-bust cycle, as every logic, memory, and storage chip now affects AI performance. The chief executive dismissed concerns about overbuilding and said Lam Research is hiring "everywhere" to support the growth.
Lam Research is strengthening its position in the DRAM market as AI drives demand for high-bandwidth memory. DRAM accounted for 23% of the company's systems revenues in Q4 fiscal 2026, with revenues remaining near record levels despite a slight quarterly decline from 27%. The company is expanding through its VECTOR and Akara platforms, with Akara's installed base doubling annually since launch. Management expects this growth to continue in 2027. Lam Research posted Q4 revenues of $6.72 billion, up 15.1% sequentially, with non-GAAP operating margin expanding 340 basis points to 38.4%. The company now projects 2026 wafer fabrication equipment spending at the low-$150 billion range, up from $140 billion previously. The Zacks Consensus Estimate forecasts fiscal 2027 revenues of $34.48 billion, indicating 48.4% year-over-year growth. However, Lam faces strong competition from Applied Materials and KLA Corporation in the DRAM equipment market.
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About Lam Research
Industries
Hardware
Industrial & Manufacturing
Company Size
10,001+
Company Stage
IPO
Headquarters
Fremont, California
Founded
1980
There are no jobs for Lam Research right now.
Find jobs on Simplify and start your career today