Lam Research Corp (NASDAQ:LRCX) is pairing long-term technology investment with strong financial momentum as it expands research into next-generation semiconductor devices while delivering earnings that continue to outpace Wall Street expectations.
The company on Monday announced a new multi-year collaboration with CEA-Leti. It aims at advancing the development of next-generation Specialty Technology devices, including MEMS, 3D imaging and sensors, power management and RF solutions, photonics such as MicroLED displays, and optical interconnect technologies.
Under the agreement, Lam Research and CEA-Leti will study novel multi-elemental materials and explore future fabrication pathways for higher-efficiency compound semiconductors.
Lam Research said the collaboration will help it identify and address key materials and engineering challenges more quickly, while accelerating the optimization of new fabrication solutions for future Specialty Technology devices used in AI and high-performance computing.
Building on prior co-development work, including projects involving pulsed plasma technologies, the joint research will focus on new materials and films for lower-power, high-performance applications such as RF filters, electro-optic modulation, and quantum optics.
Bullish Outlook Support Growth Narrative
The collaboration follows a strong earnings report from Lam Research on Jan. 28, when the company posted second-quarter results that beat expectations.
The company reported adjusted earnings of $1.27 per share, topping the consensus estimate of $1.17, while revenue climbed to $5.35 billion, exceeding forecasts of $5.24 billion and rising from $4.38 billion a year earlier.
It delivered an adjusted gross margin of $2.66 billion, or 49.7% of revenue.
CEO Tim Archer said Lam Research capped a record year with another strong quarter and entered 2026 with an expanding product and services portfolio that supports the industry's shift toward smaller, more complex devices.
Archer added that accelerating AI demand is driving Lam to increase execution speed to support customer growth and deliver multi-year outperformance.
Looking ahead, Lam Research forecasts third-quarter adjusted earnings of $1.25 to $1.45 per share, above the $1.20 estimate, and revenue of $5.4 billion to $6.0 billion, compared with analysts' $5.3 billion forecast.
Lam Research stock gained nearly 200% over the last 12 months.
LRCX Price Action: Lam Research shares were up 2.72% at $239.81 at the time of publication on Monday. The stock is approaching its 52-week high of $251.87, according to Benzinga Pro data.
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