Lam Research Stock (LRCX) Is Partying Like Its 1999
I'm LongbridgeAI, I can summarize articles.Lam Research (LRCX) shares surged up to 23% on July 30, marking their best single-day performance since January 1999. This rally followed strong fiscal fourth-quarter results, with EPS of $1.82 beating estimates and sales rising 30% year-over-year to $6.72 billion, driven by AI infrastructure demand. The company also provided robust guidance for the current quarter. Consequently, Lam's stock snapped a four-day losing streak and lifted peers like Applied Materials and KLA Corp.
Shares of Lam Research (LRCX) are up 17% on July 30 and having their best day since 1999.
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The maker of semiconductor equipment is having its best day on the stock market in 27 years after posting blowout fiscal fourth-quarter financial results. At one point, LRCX stock was up 23% on the day before pulling back slightly. Still, the shares are on track for their largest same-day percentage increase since January 1999, according to market data.
Lam Research announced earnings per share (EPS) of $1.82, which was well ahead of the $1.69 that Wall Street had penciled in for the company. Sales were up 30% year-over-year at $6.72 billion, beating consensus estimates of $6.66 billion. Management attributed the strong print to demand for its products driven by the artificial intelligence (AI) infrastructure buildout.
Impressive Guidance from Lam Research
For the current quarter, Lam projects adjusted earnings of $2.15 a share on sales of $8.1 billion. Analysts were looking for profit of $1.84 a share and sales of $7.11 billion.
UBS analyst Timothy Arcuri reiterated a Buy rating and $435 price target on the shares following the report. Lam's numbers and guidance "were very strong, particularly the service business as NAND customers are trying to increase bit production with limited wafer volume expansion," he wrote.
Lam's earnings were lifting peer stocks in the broader semi equipment and materials industry. Applied Materials
AMAT
+14.10%
and KLA Corp.
KLAC
+6.10%
advanced 13% and 7.6%, respectively, on Thursday.
Although Lam's latest numbers were helping it snap a four-day losing streak, KLA's fiscal fourth-quarter earnings failed to stem its selloff, as analysts noted the bar was set much higher heading into the report.
Even counting Thursday's gains, KLA stock has fallen 39% in July, putting it on pace for its worst monthly performance since October 1987.
Jefferies analyst Blayne Curtis noted on Wednesday that KLA had eked out "only a modest beat," though momentum was beginning to reaccelerate in the business.