Lam Research (LRCX) shares have risen 64% over the past year as demand for memory from AI infrastructure boosts sales of chipmaking equipment, and the author notes the memory shortage may last until 2030. In fiscal Q1 2027, the company reported revenue of $8.22 billion, up nearly 55% year over year, a non-GAAP operating margin of 40.2% (up 5.2 percentage points), and adjusted EPS of $2.20, versus Wall Street's estimate of $2.18. Guidance for the current quarter of about $8.6 billion in revenue and $2.33 in adjusted EPS was in line with expectations, and the stock fell more than 8% after the report. SEMI projects global semiconductor equipment sales of $166 billion in 2026, while Bank of America estimates WFE spending could reach $360 billion in 2030. The author sees the post-earnings decline as a possible opportunity and offers a hypothetical: with EPS of $17.11 after four years and a 30x earnings multiple, the stock could reach $513, implying a $10,000 investment could grow to more than $21,600.
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