From BigGo Finance · BigGo Finance · · 1m 20s
Lam Research Posts Record Revenue on AI, Shares Drop
Lam Research reports record quarterly revenue driven by AI infrastructure, but shares fall 6% after hours.
In brief
Lam Research reports record quarterly revenue driven by AI infrastructure, but shares fall 6% after hours. Lam Research reported $8.22 billion quarterly revenue, beating estimates, but shares dropped 6.1% after hours due to narrow results and wide guidance. Originally reported by BigGo Finance.
Q1 Results
Lam Research reported record quarterly revenue of $8.22 billion for fiscal 2027 Q1, beating market expectations.
AI-Driven Demand
Expanded AI infrastructure investment boosted demand for deposition and etch equipment, driving record revenue.
Profitability Metrics
Adjusted gross margin reached 52.4%, and operating margin hit 40.2%, both all-time highs.
Quarterly Guidance
Second-quarter revenue guidance of $8.6 billion plus or minus $400 million exceeded market estimates.
Stock Reaction
Shares fell 6.1% after hours despite strong results, as investors took profits.
Market Context
The stock is up 80% over the past year but down 40% from its 52-week high.
Guidance Range Concerns
A wide revenue guidance range of $8.2 billion to $9 billion heightened investor caution.
CEO Statement
CEO Tim Archer attributed record revenue to AI-driven semiconductor demand and complex chip manufacturing.
Regional Breakdown
China accounted for 35% of revenue, followed by South Korea (20%) and Taiwan (18%).
Here's the gist
Lam Research reported $8.22 billion quarterly revenue, beating estimates, but shares dropped 6.1% after hours due to narrow results and wide guidance.
