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Lam Research forecasts quarterly revenue above estimates on AI chip boom

(Reuters) - Lam Research reported quarterly revenue above Wall Street expectations on Wednesday, as chipmakers ordered more of its equipment used to manufacture semiconductors for artificial intelligence applications.

Lam Research supplies equipment to chip manufacturers, whose businesses had taken a hit in 2023 due to a glut of certain semiconductors used in personal computers and smartphones. But a surge in demand for AI chips has kick-started growth in the industry.

Some of those electronics categories are showing signs of recovery even as an AI-boom is prompting chip firms to build new capacity, lending a cascading upside to vendors such as Lam Research.

"As our customers address the challenges in scaling semiconductors to meet the power and speed requirements for driving AI transformation, Lam is strengthening its leadership and is well-positioned for the significant opportunities ahead," CEO Tim Archer said in a statement.

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The company expects revenue for the current quarter ending June 30 at $3.8 billion plus or minus $300 million, compared with analysts' average estimate of $3.77 billion, according to LSEG data.

Shares of Fremont, California-based company fell marginally in trading after the bell.

Lam posted revenue of $3.79 billion in the three months ended March 31, compared with market estimates of $3.72 billion.

Excluding items, the company posted profit of $7.79 per share, compared with estimates of $7.30 per share.

(Reporting by Akash Sriram in Bengaluru; Editing by Shilpi Majumdar)