Lam Research delivered solid Q4 FY2024 results, with revenue of $3.871B, gross margin of 48.5% (guidance range 47% ±1%), and GAAP net income of roughly $1.02B (diluted EPS of $0.78 on a 1.306B-share base). The quarter benefited from a robust CSBG (Customer Support and Services/Spare Parts & Upgrades) mix, and Lam achieved a record gross margin for the post-merger era (FY2024 gross margin of 48.2%). Management highlighted accelerating demand in the CSBG channel through Reliant systems and spares, and they underscored a strategic investment program to extend technology differentiation, expand Asia-based manufacturing, and accelerate digital transformation to capture multiyear WFE spending growth. The firm also celebrated a manufacturing milestone (Malaysia facility shipping its 5,000th chamber) as it ramps capacity to support near-market service and upgrade demand.
Looking ahead, Lam guided to a September quarter revenue of about $4.05B (+/-$0.3B), gross margin of ~47% (+/-1 pp), operating margin ~29.5% (+/-1 pp), and an EPS target of about $8 (+/-$0.75) based on a reduced share count (~131M). Management reiterated a positive view on 2025 WFE spending, signaling a mid-to-high single-digit to double-digit potential in NAND/DRAM upgrade-driven capex, and a continued AI-enabled etch/deposition opportunity pipeline (including Gate-All-Around, backside power delivery, and advanced packaging). They also signaled that China spending should remain solid in 2025 but with a first-half emphasis, acknowledging continued geopolitical/regulatory risk.
Overall, Lam remains leverageable to the AI-driven semiconductor cycle, supported by a strong balance sheet (net cash position) and robust free cash flow generation. The key questions for investors are the pace of NAND/DRAM upgrade cycles, China spend trajectory, and Lam’s ability to scale new platforms (e.g., DIRECTDRIVE conductor etch, Lam Cryo 3.0, and PECVD-based gap fill deposition) across a growing installed base and Asia-centric manufacturing footprint.