Q: What is Lam Research (LRCX) Q1 2024 Earnings Call Transcript Summary?
Here are the specific viewpoints from earnings call
Bullish Points:
1. Lam Research is off to a strong start in 2024 with revenues, profitability, and earnings per share exceeding the midpoint of guidance.
2. Industry WFE spending for 2024 is predicted in the low to mid-$90 billion range, with a modest increase from the prior view.
3. DRAM remains strong with growing demand for high-bandwidth memory and sustained investment in domestic China.
4. Foundry logic growth in leading-edge spending is being partially offset by a decline in mature node spending outside of domestic China.
5. Encouraging uptick in fab utilization leading to double-digit percent growth quarter over quarter in spares revenues.
6. Strong setup developing for 2025 NAND spending as supply and demand continue to normalize.
7. Lam is well-positioned to benefit from powerful secular drivers of semiconductor growth and innovation, such as generative AI and other emerging smart applications.
8. Lam's investment in customer-centric lab investments and proprietary Semiverse Solutions digital twin capabilities is showing positive effects.
9. Lam's tools are enabling critical technology transitions in the industry, such as the move from FinFET to gate all around in foundry logic.
10. Expectation of HBM-related shipments to grow more than three times in calendar year 2024.
Bearish Points:
1. Technical difficulties in posting earnings call slides externally.
2. Deferred revenue balance decreased by $182 million from the December quarter.
3. Revenue for the March quarter was roughly flat with the prior quarter.
4. Customer support business group revenue was down 4% from the December quarter and 13% lower than the March quarter in the previous year.
5. Increase in operating expenses due to an extra week in the quarter and growth in R&D spending.
6. Gross margin decline expected in the June quarter due to a change in customer mix.
7. Operating margins expected to decrease slightly due to continued commitment to prioritize R&D spending.
8. Potential volatility in OI&E due to market-related fluctuations.
9. Inventory turns remained flat, indicating no improvement in inventory turnover rate.
10. Concerns about changes in US trade policy with respect to China that could impact business.
For more information about Lam Research(LRCX)'s earnings call, you can read the relevant news: Lam Research (LRCX) Q1 2024 Earnings Call Transcript.
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