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Lam Research Projects Quarterly Revenue Surpassing Estimates Driven by AI Boom, According to Reuters

(Reuters) – Lam Research, a supplier of chip-making tools, has projected revenue for the September quarter that exceeds Wall Street expectations, driven by an increase in orders from chip manufacturers amid the AI surge.

The growing demand for AI-driven chips has heightened the need for wafer fabrication equipment, which are complex and costly tools essential for chip production, thereby benefiting companies like Lam Research.

The Fremont, California-based firm expects revenue for the quarter ending September 29 to fall between $4.05 billion and $4.35 billion, surpassing analysts’ average estimate of $4.02 billion, according to data from LSEG.

Lam Research faces competition from other leading suppliers of wafer fabrication equipment, including Applied Materials, ASML from the Netherlands, and KLA Corp.

Recently, KLA Corp also issued an optimistic forecast for revenue and profits for its fiscal first quarter, surpassing expectations following a strong performance in the prior three months.

The increasing demand for high-performance computing and data centers has fueled a corresponding need for memory semiconductors, such as dynamic random access memory (DRAM) and flash memory, further benefiting suppliers of chip-making tools.

Lam Research counts major companies like Intel, Micron Technology, Samsung Electronics, and TSMC among its customer base and anticipates an adjusted net income per share of $8, plus or minus $0.75, for the September quarter, in line with estimates.

For the quarter ending June 30, Lam reported revenue of $3.87 billion, which exceeded analysts’ expectations of $3.82 billion.

In the reported quarter, total revenue from China accounted for 39%, a slight decline from 42% in the previous quarter.

Adjusted profit per share for the quarter was $8.14, also surpassing the estimates of $7.58 per share.

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