Lam Research (LRCX)
Etch + deposition equipment leader. Critical for advanced-node memory and logic.
- Ticker: LRCX
- Sector: fab equipment (etch)
Lam Research (LRCX) is a tracked supply-chain name in the data-center buildout in the fab equipment sector. Data Center Index tracks Lam Research's capex history, project wins, and supplier exposure across the AI infrastructure buildout, refreshed daily from SEC filings and project announcements.
Lam Research data center thesis
Lam owns etch and deposition for advanced-node memory and logic, the steps that turn an EUV-patterned wafer into a finished 3D NAND or HBM die. FY25 revenue hit $18.4B with $5.9B operating income and 49% gross margin, and Q1 FY26 backlog of $2.2B (+11% YoY) signals that HBM and advanced-packaging spend is still pulling tool deliveries forward.
Bull case
- HBM and 3D NAND are etch-intensive at exactly the steps Lam dominates: every additional HBM layer or DRAM bit-density jump pulls more LRCX tools per wafer-start, which compounds across the Micron / SK Hynix / Samsung HBM4 ramps.
- Advanced packaging (CoWoS, hybrid bonding) shifts more value to deposition and selective etch, where Lam holds reference-process status with TSMC and Samsung.
- FY25 revenue +24% with $5.9B operating income and 49% gross margin shows the operating leverage when WFE comes off the FY24 trough; FY26 is set up for further mix-up as memory capex scales.
Bear case
- China memory restriction risk is acute: the largest individual end-market for memory etch tools has historically been YMTC/CXMT, and any further enforcement of US export rules cuts the run-rate before logic can offset.
- Memory cycle inversion is the structural bear: when DRAM/NAND pricing breaks, customer capex gets cut first, and Lam revenue is more memory-levered than peers.
- Up 293% in 12 months on memory cycle peak earnings; cycle compression on a sub-cycle-peak multiple is the cleanest base case if HBM oversupply hits in 2027.
Lam Research revenue and capex
In fiscal 2026, Lam Research reported revenue of $23.2B, capital spending of $966.4M and operating income of $8.2B.
| Fiscal year | Revenue | Capex | Operating income |
|---|---|---|---|
| 2026 | $23.2B | $966.4M | $8.2B |
| 2025 | $18.4B | $759.2M | $5.9B |
| 2024 | $14.9B | $396.7M | $4.3B |