Lam Research (LRCX) reported gross margin reached 52%, the highest level in two decades, during a presentation at the Goldman Sachs Communacopia + Technology Conference on September 10, 2026. Management guided to maintain margins in the 51% to 52% range in the near term, with a long-term target in the middle 50s over several years.
The semiconductor equipment maker said demand remains exceptionally tight across its portfolio. Industry capacity is fundamentally sold out and constrained by clean room availability, with customers seeking delivery timelines faster than Lam can fulfill. Customer Support Business Group (CSPG) revenue reached nearly $2.5 billion in the most recent quarter, marking its third consecutive record quarter.
Lam outlined a $3 billion planned investment in U.S. lab and engineering capability, including a new facility in Oregon announced roughly two weeks before the conference. Between now and the end of 2025, 8 to 10 new Tier 1 customer clean rooms are expected to come online.
On market dynamics, DRAM is projected to lead wafer fab equipment spending in 2026, followed closely by leading-edge foundry logic and NAND. NAND conversion spending, previously guided at $40 billion over several years, is expected to finish by year-end 2025. Peak wafer capacity through the end of 2025 is down 20% from a wafer-start standpoint during the conversion cycle.
Lam addressed its serviceable addressable market (SAM), noting it currently addresses approximately 30% of overall wafer fab equipment spending, with a path toward the high 30% range. For every 100,000 wafer starts of advanced capacity — such as Gate-All-Around or backside power delivery — Lam's SAM expands by roughly $1 billion.
The company highlighted its Akara conductor etch platform, Vantex deposition products, and the Lam Cryo 3.0 tool featuring the highest ion energy in chamber capability. It also noted ongoing investments in mature-node offerings via its Reliant product line and DirectDrive technology, alongside Through-silicon via (TSV) drill and fill processes.
On AI adoption, two-thirds of Lam's field engineering community now use AI-powered service tools trained on over 30 years of troubleshooting data.
China WFE spending was "slightly up," but growth outside China is advancing much faster, reducing China's share of overall spending over time. Lam stated it operates strictly within compliance of all export control rules.
Management reiterated that organic growth is the primary strategic focus; major acquisitions are not part of the ongoing plan, though small tuck-in deals remain possible. Lam and Novellus were merged in 2012.
LRCX closed at $288.11 on September 18, up $18.80 or 6.98%, with an after-hours quote at $292.90, up $4.79 or 1.66%.
