Jan 28 (Reuters) - Lam Research LRCX.O forecast third-quarter revenue above Wall Street expectations on Wednesday, as enterprises ramped up orders of its chipmaking tools.
Shares of the company rose 6% in extended trading following the results.
Rising demand for advanced AI applications has boosted product orders for companies such as Lam Research, which makes machines and devices capable of manufacturing powerful semiconductors that power such applications.
Lam's strong exposure to the memory chip industry could also help it benefit from the booming demand for high bandwidth memory, as AI infrastructure requires massive amounts of data to process machine learning applications.
"Entering 2026, our expanding product and services portfolio is enabling the market's transition to smaller, more complex three-dimensional devices and packages," CEO Tim Archer said.
The company's shares more than doubled last year as it rode the AI wave, while investors bet on its long-term prospects as a key supplier to the highly lucrative semiconductor industry.
Lam forecast third-quarter revenue of $5.7 billion, plus or minus $300 million, compared with estimates of $5.34 billion, according to data compiled by LSEG.
The company projected adjusted earnings of $1.35 per share for the third quarter, plus or minus 10 cents, while analysts expect profit of $1.20 per share.
For the second quarter, its revenue came in at $5.34 billion, beating estimates of $5.26 billion.
Lam earned $1.27 per share on an adjusted basis during the quarter, compared with estimates of profit of $1.17 per share.
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