NASDAQInformation TechnologySemiconductor Equipment & MaterialsSnapshot 2026-07-08
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Lam Research grows revenue to about $6.6 billion next quarter. Gross margin stays near 50.5%. Profit margin improves to about 36.5%. The company benefits from strong demand and a growing wafer fab equipment market.
Revenue growth may slow due to AI demand fears. Profit margins could compress if costs rise. Recent guidance cuts and a sharp stock selloff raise concerns about near-term momentum.
The stock trades about 14% above our fair value near $290, reflecting roughly 42% revenue growth expected by analysts. Our fair value is 23% below the Street median, indicating some valuation risk versus consensus optimism.
Breaks if: gross margin falls below 48% next quarter
Lam Research aims to sustain a gross margin of approximately 50.5% in the upcoming quarter.
Stated in 3 of last 3 quarters. Gross margin was 49.8% in 2026-Q1, close to the 50.5% target. The guidance for 2026-Q2 is 50.5%, showing a consistent focus on maintaining margins. The trajectory is delivering on the stated priority.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“Gross margin as a percent of revenue of 49.8%.”
“Gross margin as a percentage of revenue 49.0% +/- 1%.”
“Gross margin as a percentage of revenue 49.9% +/- 1%.”
Breaks if: operating margin falls below 34% next quarter
Lam Research targets an operating margin of 36.5% for the quarter ending June 28, 2026.
Stated in 3 of last 3 quarters. Operating margin was 35.0% in 2026-Q1, up from 33.9% in 2025-Q4. The guidance for 2026-Q2 is 36.5%, indicating progress towards the target. The trajectory is delivering on the stated priority.
“Operating margin as a percent of revenue of 35.0%.”
“Operating income as a percentage of revenue 33.9% +/- 1%.”
“Operating income as a percentage of revenue 34.3% +/- 1%.”
Breaks if: revenue falls below $6.0 billion next quarter
Lam Research aims to achieve a revenue target of $6.6 billion for the quarter ending June 28, 2026.
Stated in 2 of last 2 quarters. Revenue grew from $5.34 billion in 2025-Q4 to $5.84 billion in 2026-Q1, a 9% increase. The guidance for 2026-Q2 is $6.6 billion, indicating a focus on continued growth. The trajectory is delivering on the stated priority.
“Lam is providing guidance for U.S. GAAP Revenue $6.60 Billion +/- $400 Million.”
“Lam is providing guidance for U.S. GAAP Revenue $5.70 Billion +/- $300 Million.”
