📊 Lam Research, record margins and strong outlook!
Lam Research $LRCX shows why it is one of the key players in semiconductor technology. The company manufactures high-end equipment for depositing, etching and cleaning materials used in the production of semiconductor chips.In its Q1 2025 results announced Thursday, the company surprised with not only revenue and profit growth, but also record margins and a strong outlook for the next quarter.

📈 Q1 2025 results
Revenue: $4.72 billion, up 8% from the previous quarter

Earnings per share (EPS): $1.04 ($0.04 above expectations)

Gross margin: 49% - highest since the merger with Novellus

Operating margin: 32.8% (vs. 30.7% in the prior quarter)

Profit from Customer Support division: +21% y/y

Free cash flow (TTM): $1.7 billion

Cash & equivalents: USD 5.5 billion

All of this translated into a positive market reaction, with the company's stock gaining more than 16 %, and the numbers reaffirm that Lam is one of the technology leaders with high operational efficiency.

🔍Division of production segments
Memory systems: 43% of sales
Foundries: 48% of sales - record revenues due to demand for high-end equipment
Logic & Other: 9% of sales

Geographically, Chinaled the way (31 %)followed by Korea and Taiwan (24% each). Significant revenue growth was also recorded due to NAND technologies and customer DRAM device upgrades.

🔬 Investing in the future
R&D expenditure: 70% of operating expenses (USD 763 million)

Expansion: land purchase in India

Number of employees: 18,600 (+300 q/q)

Lam is building a technological edge through intensive investment in research, be it in ALD (ultra-thin film deposition) technology, etching or virtualization of production (SEMulator3D).

🔮 Outlook for Q2 2025
Revenues.

Gross margin: 49.5% +/- 1%

EPS: $1.20 expected

The outlook is encouraging and suggests the company will continue to benefit from the technology shift towards advanced chips and capacity expansion in NAND.

⚠️ Challenges
Decline in memory segments (DRAM, non-volatile)

Declining market for logic systems

Uncertainty over sustainability of record margins

Geopolitical tensions and tariffs

Lam Research thus delivers very solid results and shows that a combination of operational efficiency and technological edge is the key to success.

The company's strong balance sheet, high return on equity and focus on research and development make it an attractive player even in the turbulent environment of the semiconductor industry.

What is your opinion of Lam Research?