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StocksUpdated×3•Originally published 20 April 2026•Updated 21 April 2026•

1 min read

Lam Research Set for Strong Q3 Results Amid Surging AI Chip Demand

Key Facts

1Strong foundry demand is expected to boost Lam Research's (LRCX) Systems sales in Q3.

2Advanced etch and EUV tools are gaining significant traction in the market.

3Surging demand for AI chips is a primary driver for the projected sales growth.

about 1 month ago

Version History

Version 3about 1 month ago

What changed: The story was updated to include Axcelis's $4.4 billion all-stock merger proposal for Veeco, highlighting significant M&A activity in the semiconductor equipment sector.

Version 2about 1 month ago

What changed: The story was updated to include Silicon Motion's strong growth guidance in the enterprise SSD and data center storage segments.

Version 1about 1 month ago

What changed: The story was updated to include a cautious outlook on Applied Materials (AMAT) relative to Lam Research's strength, noting AMAT's potential for a price correction due to valuation concerns.

Lam Research (LRCX) is anticipated to report robust third-quarter results fueled by surging demand for AI chip manufacturing equipment. Adding to the sector's momentum, Axcelis (ACLS) is pursuing a $4.4 billion all-stock merger with Veeco (VECO) to expand its semiconductor tool portfolio, though the deal faces potential integration challenges and regulatory hurdles in China. Meanwhile, Silicon Motion (SIMO) has guided for 5-10% sequential revenue growth in Q1, driven by enterprise SSD demand in hyperscale data centers. SIMO's forward P/E of 25x and earnings growth of 60% result in an attractive PEG ratio below 0.5x, outperforming Marvell (MRVL). Conversely, Applied Materials (AMAT) remains rated as 'Hold' due to valuation concerns relative to peers like ASML. These developments highlight a high-growth but selective environment across the semiconductor equipment and storage segments.