Lam Research Corp. reported record quarterly results in the extended session Wednesday as the company’s results are showing proof that chip makers are spending more to build out their capacity amid a global semiconductor shortage.
Lam LRCX,
Revenue rose to $3.85 billion from $2.5 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast $6.62 a share on revenue of $3.72 billion, based on Lam’s forecast of $6.15 to $6.95 a share on revenue of $3.5 billion to $3.9 billion.
Read: The semiconductor shortage is here to stay, but it will affect chip companies differently
“Lam’s growth trajectory continues with record revenue and earnings per share delivered in the March quarter,” said Tim Archer, Lam’s chief executive, in a statement. “Semiconductors are reaching new heights of strategic relevance, and Lam’s differentiated ability to meet our customers’ scaling challenges positions us well amid a strong wafer fabrication spending environment.”
Chip-equipment makers like Lam are poised for multiple quarters of strength going forward as fabs, or the manufacturing plants that make the silicon wafers used in semiconductors, build out their capacity amid a global shortage in microchips.
Lam forecast adjusted earnings of $6.92 to $7.92 a share on revenue of $3.75 billion to $4.25 billion for the fiscal fourth quarter. Analysts had estimated $6.78 a share on revenue of $3.72 billion.
Lam shares traded between slight gains and losses after hours, following a 4.6% rise in the regular session to close at $641.25. Lam shares closed at a record high of $668.00 as recently as April 8.
Over the past 12 months, Lam shares have soared 163%, while the PHLX Semiconductor Index SOX,
