Lam Research forecasts upbeat quarterly revenue on strong demand for chipmaking tools (updated)

Lam Research

22/04/2026 23:20

Updates shares, adds CFO comments in paragraph 6

April 22 (Reuters) - U.S. chip-equipment maker Lam Research LRCX.O forecast fourth-quarter revenue above Wall Street expectations on Wednesday, as enterprises ramped up orders for its chipmaking tools used to manufacture advanced artificial intelligence semiconductors.

Shares of the company rose more than 2% in extended trading.

The spike in demand for powerful chips that drive large language models and AI applications has pushed up spending on chipmaking equipment offered by companies such as Lam Research.

Fremont, California-based Lam expects revenue for the fourth quarter ending June 28 to be $6.60 billion, plus or minus $400 million, compared with an estimate of $6.09 billion, according to data compiled by LSEG.

Lam is a supplier of etch and deposition equipment, technology integral to the production of the chip industry's most advanced integrated circuits.

Deferred revenue balance at the end of the third quarter came in at $2.22 billion, CFO Doug Bettinger said in a post-earnings call with analysts. Within this balance, customer down payments came down by roughly $300 million and are now at their lowest level in nearly four years, he said.

Lam's shares have risen nearly 60% this year, having surged about 137% in 2025, supported by strong demand for AI semiconductors as chip designers seek equipment to create processors capable of meeting growing computing needs.

It projected adjusted earnings of $1.65 per share, plus or minus 15 cents, for the fourth quarter, while analysts expect a profit of $1.45 per share.

For the third quarter ended March 29, Lam reported revenue of $5.84 billion, beating an estimate of $5.78 billion.

It posted adjusted earnings of $1.47 per share for the quarter, also ahead of an estimate of $1.36 per share.

 (Reporting by Juby Babu in Mexico City; Editing by Pooja Desai)

 ((Juby.Babu@thomsonreuters.com;))