Lam Research reported record quarterly revenue of $8.22B and non-GAAP earnings per share of $2.20, both ahead of estimates, then guided the current quarter to $8.6B at the midpoint. Chief financial officer Doug Bettinger said the figure “would have been a bit higher if not for some near-term supply chain constraints” and declined to size the gap.
Shares fell about nine percent, and the damage spread. Applied Materials dropped six percent and ASML four, with the iShares Semiconductor ETF down four percent against two percent for the Nasdaq-100. That spread matters: neither rival had reported, so the selling was about the structure of the equipment trade rather than one company’s orders.
Chief executive Tim Archer compared the shortage to the pandemic years and then said it was nothing like that, expecting a quick resolution.
The deeper number is the market itself. Lam’s preliminary view has calendar 2027 wafer fab equipment spending above $200B, and Bettinger said unconstrained demand would run higher still. He also warned that supply will stay constrained next year. China accounted for 35 percent of September-quarter revenue and is expected to fall sharply.
The company sells etch and deposition tools and calls advanced packaging a major growth driver. The paradox is plain: the toolmakers whose machines are supposed to end the shortage cannot build them fast enough to fill their own order books.
