This report does not constitute a rating action. Lam Research Corp. is poised for strong growth, driven by AI-related semiconductor demand. We now project fiscal 2026 revenue of about $23 billion and fiscal 2027 revenue reaching $27.5 billion, representing compound annual growth of 22% over the two-year period. The company should benefit from strong underlying demand for and the process complexity of AI-related chips. We expect strong growth in the memory and foundry segments to drive overall growth in fiscal 2026 and fiscal 2027. Hyperscalers are investing heavily, driving demand for advanced logic and memory semiconductors and wafer fabrication equipment. We expect Taiwan Semiconductor Manufacturing Co., the company?s largest customer, and several other memory manufacturers to increase capital spending significantly
