Lam Research Posts Record Quarter but Supply Bottlenecks Cap the AI Chip Equipment Ceiling

Lam Research posted the strongest quarter in its history and the stock got punished for it. The chip equipment maker reported record $8.22 billion revenue for the quarter ended September 27 and cleared a milestone it had chased for years, an operating margin above 40 percent for the first time. Shares were down roughly 12 percent in Friday trading, October 23, and the reason was not demand. Supply chain bottlenecks, not soft AI orders, are now the ceiling on the equipment cycle.

Key Takeaways Lam Research Q1 FY2027 revenue rose 22 percent to a record $8.22 billion, with a first-ever operating margin above 40 percent (Lam Research, reported Oct 21). December-quarter revenue guidance of about $…