Lam Research (LRCX) shares are down almost 50% from their June all-time highs, even though its latest quarter beat expectations, with revenue up 54.5% to $8.22 billion and adjusted EPS up 77.4% to $2.20. Guidance of $8.6 billion in revenue and $2.33 in EPS for the quarter ending Dec. 27 was seen as light, but management said the constraint is tight supply, including clean room space and component shortages, not weaker demand. Management projects industrywide wafer front-end equipment (WFE) spending will exceed $200 billion in 2027, up from about $155 billion this year, a figure it views as supply-constrained. The article highlights single-level cell (SLC) NAND, which stores one bit per cell and offers lower latency, as a potential driver of more NAND wafer production, with Lam estimating that every 1% shift to SLC requires a 2% increase in NAND wafer volume. The stock trades at 23.9 times the average analyst estimate for fiscal 2027, and the author says it is back in an attractive range after the drawdown.
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| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/26/2026 | 712.20 |
| Change that session | +1.11% |
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