Lam Research's Q2 Earnings Call: Our Top 5 Analyst Questions

Lam Research’s second quarter results came in ahead of Wall Street’s revenue and profit expectations, but the market reacted negatively. Management highlighted strong foundry and NAND performance, pointing to rising demand for advanced chip architectures linked to artificial intelligence (AI) and high-bandwidth memory. CEO Tim Archer emphasized momentum in new etch and deposition products and expanded services, especially as customers upgrade to higher layer NAND and more complex packaging solutions. Management also cited operational efficiency improvements and customer mix as supporting factors.

Is now the time to buy LRCX? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Lam Research’s Q2 Earnings Call

• Christopher James Muse (Cantor Fitzgerald) asked about the key drivers of Lam’s outperformance versus industry growth. CEO Tim Archer highlighted technology transitions in gate-all-around, advanced packaging, and NAND scaling as primary factors.
• Harlan L. Sur (JPMorgan) questioned whether increased China spending was a pull-forward due to tariffs or efforts to localize. CFO Doug Bettinger responded that spending was simply higher from a handful of customers, without a clear single driver.
• Stacy Aaron Rasgon (Bernstein Research) inquired about the sustainability of China strength and the drivers of margin declines in coming quarters. Bettinger confirmed that normalization in China and higher tariffs were expected to weigh on both revenue and margins.
• James Edward Schneider (Goldman Sachs) asked if Lam could grow in 2026 even if industry capital expenditures remain flat. Bettinger emphasized Lam’s product strength and share gain potential from increased etch and deposition intensity.
• Blayne Peter Curtis (Jefferies) probed about DRAM and high-bandwidth memory momentum. Archer noted steady share gains in DRAM, especially as AI drives demand for more advanced memory and manufacturing precision.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will be watching (1) whether China spending remains elevated or reverts to historical levels, (2) the pace of adoption for Lam’s advanced packaging and gate-all-around products across customer segments, and (3) management’s ability to sustain gross margin improvements despite tariff and mix headwinds. Developments in service automation and customer wins in next-generation memory will also be key indicators.

Lam Research currently trades at $105.48, up from $99.14 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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