Lam Research Forecasts Major Rebound as AI Fuels Surge in Memory Chip Demand
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Lam Research's revenue and earnings declined sharply in 2022 due to weak semiconductor equipment spending, especially in the memory market.
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But the company expects a major turnaround in 2023 and beyond as spending on semiconductor equipment, especially memory, rebounds rapidly.
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Demand for high-bandwidth memory (HBM) is soaring thanks to adoption in AI chips like Nvidia's latest offerings. This benefits Lam Research.
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Growth in AI adoption in various devices like smartphones and PCs will also drive more memory demand.
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If earnings hit estimates, Lam Research's stock could surge 50% in the next couple years as the memory market rebounds.