On this page of StockholderLetter.com we present the latest annual shareholder letter from LAM RESEARCH CORP — ticker symbol LRCX. Reading current and past LRCX letters to shareholders can bring important insights into the investment thesis.

 •  9/24/2025 Letter Continued (Full PDF)
 •  9/27/2023 LRCX Stockholder Letter
 •  9/25/2024 LRCX Stockholder Letter
 •  More "Industrial Machinery & Equipment" Category Stockholder Letters
 •  LRCX Benford's Law Stock Score = 48

LRCX Shareholder/Stockholder Letter Transcript:

Some dream of the future.
We engineer it.
At the atomic scale, where breakthrough technologies take shape,
two fundamental forces drive every advance: the science of
perfect placement and the art of precise removal. This is where
Lam Research leads.
In the space between atoms, where angstroms define the
boundary of what   s possible. While others question if it can be
done, we prove it. From advanced memory to logic. From cloud
computing to artificial intelligence.
Deposition and etch drive progress in semiconductor
manufacturing, and our innovations keep pushing the
industry forward.
Two critical enablers. One proven leader.
Lam Research.

LETTER TO OUR STOCKHOLDERS
Dear Lam Stockholders,
For more than four decades, Lam Research has focused on solving the most complex problems in
chipmaking, and fiscal year 2025 was a landmark year that demonstrated our strategy   s enduring
power. We achieved all-time highs in revenue and key profitability metrics while continuing to
strengthen our portfolio for the critical inflections needed to create next-generation chips.
Our execution was very strong across many dimensions. Revenue reached $18.4 billion and diluted
earnings per share of $4.15 set a new company record. Our gross margin and operating income
margin both reached the highest annual level since the Lam-Novellus merger in 2012, underscoring
both the scale and efficiency of our global operations and the differentiated value we deliver to
customers. Our strong revenue and profitability performance enabled Lam to generate $6.2 billion
in cash flows from operating activities and return
$4.5 billion to stockholders through share repurchases
and dividends in fiscal year 2025.
These results are a testament to our focus on long-term
value creation and durable capital return framework.
They also reflect the payoff from strategic investments
we   ve made over several years to build the strongest
product portfolio in our history.
Artificial intelligence (AI) is driving new device
architectures and packaging approaches that are
increasingly deposition- and etch-intensive. Data
center capacity buildouts alone are projected to require
approximately $200 billion of wafer fabrication equipment
(WFE) over the next five years, with performance
demands that align with our expanded product portfolio.
But AI isn   t the only catalyst for Lam. WFE spending in general is expected to surpass $100 billion in
calendar 2025 and grow in the years ahead. At our 2025 Investor Day, we outlined how Lam is focused
on expanding our served available market (SAM) from the low 30% range of WFE today to the high
30% range by around the end of the decade, and capturing more than 50% of the incremental SAM.

Our opportunity spans critical trends across all device types:
    In NAND, the transition to devices with more than 200 layers demands additional deposition
and etch steps for applications like backside stress management, carbon gapfill, and bevel
deposition. Today Lam tools are critical to enabling customers to make 3D NAND with more
than 200 layers.
    DRAM is experiencing verticalization too. The industry is moving toward 4F   and ultimately
3D architectures which is requiring greater vertical scaling, more metal wiring layers, and
higher aspect ratios that require void-free fill and precision etch. All leading-edge AI-enabling
High Bandwidth Memory devices today are manufactured using Lam equipment.
    In foundry/logic, gate-all-around transitions,
emerging backside power distribution, and
increasingly complex packaging schemes
are creating significant opportunities in atomic
layer deposition, selective etch, through-silicon
via etch, and copper plating     areas
where Lam is delivering leading-edge
innovation and differentiated capabilities.
The inflections above align with the capabilities Lam
has spent decades strengthening. In fiscal year 2025,
we expanded our portfolio of breakthrough products
including:
    ALTUS Halo   ALD for enabling the transition to
molybdenum to solve critical resistance
challenges in advanced devices;
    Akara   conductor etch tool, which delivers industry-leading depth uniformity and profile
control for DRAM and logic scaling; and
    Industry-leading SABRE   3D copper plating systems, which are setting new standards in
advanced packaging.



 9/24/2025 Letter Continued (Full PDF)