Lam Research Corporation reported a strong start to its QQ1 2025 results, delivering revenue of $4.167B, up 7.6-8% QoQ, and net income of $1.116B with diluted EPS of $0.86. The quarter featured a gross margin of 48.2% and operating margin of 30.9%, topping guidance on both gross margin and operating margin as Lam benefited from favorable product mix and ongoing efficiency programs. The company generated $1.568B of operating cash flow and $1.458B in free cash flow, supporting diligent capital returns (approximately $1B in open-market share repurchases and $261M in dividends) and a stock split adjustment from a 10-for-1 split completed in 2024. Lam’s strategy remains anchored in AI-driven architectural transitions, including NAND technology upgrades (1-alpha/1-beta/1-gamma, moly migration), gate-all-around (GAA) improvements, backside power distribution, and advanced packaging leadership via SABRE 3D. Management asserts Lam is well positioned to outpace overall WFE growth in 2025, driven by etch/deposition intensity across multiple inflections, including NAND, leading-edge logic, and advanced packaging. While near-term China WFE intensity is forecast to normalize to a lower share of revenue, Lam expects 2025 to be a growth year for WFE and for Lam’s top line, with China contributing a smaller percentage as investments shift to other regions. The following report synthesizes the QQ1 2025 results with management commentary, assesses investment factors, and outlines the outlook for investors.