Why Lam Research (LRCX) Is Levered to AI-Driven Wafer Fab and Packaging Spending

Lam Research Corporation (NASDAQ:LRCX) is one of the best semiconductor equipment stocks to buy.

Lam Research Corporation (NASDAQ:LRCX) gave the semiconductor equipment theme a strong update on April 22, when it reported March-quarter revenue of $5.84 billion, up 9% sequentially, with non-GAAP diluted EPS of $1.47. The company said revenue and EPS reached record levels, helped by AI-driven demand across the semiconductor industry. For the June quarter, Lam guided for revenue of $6.60 billion, plus or minus $400 million, and non-GAAP diluted EPS of $1.65, plus or minus $0.15.

The AI angle is especially tied to memory and advanced packaging, which keeps Lam close to some of the most capital-intensive parts of the chip supply chain. On the company’s earnings call, management said it now expects 2026 wafer fabrication equipment spending of about $140 billion, up from the prior $135 billion range. Lam also expects advanced packaging revenue to grow more than 50% in calendar 2026, while NAND conversion investments are now expected to move faster, with most of a roughly $40 billion investment opportunity anticipated before the end of 2027.

Photo by L N on Unsplash

That setup gives Lam a clear role in the current semiconductor equipment cycle, especially as AI demand increases the need for deposition, etch, memory, and packaging technologies.

Lam Research Corporation (NASDAQ:LRCX) supplies wafer fabrication equipment and services used by semiconductor manufacturers to build smaller, more advanced, and higher-performing chips.

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