On October 23, 2024, Lam Research, based in Fremont, California, reported a revenue forecast for the December quarter that surpasses Wall Street expectations, driven by increased orders for semiconductor manufacturing equipment related to artificial intelligence applications.
The company anticipates revenue for the current quarter ending December 29 to be approximately $4.30 billion, with a margin of $300 million, compared to analysts' predictions of $4.24 billion. In its previous quarter, Lam reported revenue of $4.17 billion, exceeding estimates of $4.05 billion.
This positive outlook reflects a broader trend as businesses across various sectors rush to integrate AI capabilities, a movement sparked by the popularity of OpenAI's ChatGPT. This surge in demand has also assisted chipmakers in recovering from a downturn in personal computer and smartphone demand post-pandemic.
Shares of Lam Research rose by 5% in after-hours trading following the announcement. The company, along with Applied Materials and ASML, remains a key supplier of wafer fabrication equipment, essential for semiconductor production.