How did Lam Research's revenue trends change in Q2 2025?

Lam Research's revenue trends in Q2 2025 showed a positive performance with significant year-over-year growth, driven by robust demand in semiconductor manufacturing, particularly in advanced technologies like AI and DRAM.

1. **Revenue Growth**: The company's revenue for Q2 2025 was $4.38 billion, marking a 16.4% increase from the same quarter in the previous year. This growth was primarily fueled by strong demand in DRAM and Foundry Logic, which led to increased shipments of gate-all-around and advanced packaging technologies.
2. **Market Outperformance**: Lam Research's revenue exceeded analyst expectations, with the company reporting a 1.5% increase in revenue and a 5.6% increase in earnings per share (EPS) compared to analyst estimates. This outperformance reflects the company's strategic focus on high-growth areas like AI and advanced semiconductors, which are driving robust demand for its equipment and services.
3. **Regional Insights**: Geographically, Lam Research's revenue was diversified, with China, Korea, and Taiwan accounting for 31%, 25%, and 17% of total revenues, respectively. In China, the company faced new export restrictions in December 2024, which impacted revenues in the second half of 2025 by approximately $700 million. Despite this challenge, robust global demand, particularly for AI, offset regional revenue normalization and supported overall revenue growth.
4. **Future Outlook**: For the fiscal third quarter, Lam Research projected revenue to range between $4.35 billion and $4.95 billion, with adjusted EPS expected to be between $0.90 and $1.10. These forecasts indicate continued confidence in sustained demand for semiconductor manufacturing equipment, despite broader economic uncertainties.

In conclusion, Lam Research's revenue trends in Q2 2025 were marked by strong growth, driven by robust demand in semiconductor manufacturing, particularly in advanced technologies. The company's strategic focus on high-growth areas like AI and its diversified global presence position it well to capitalize on ongoing demand for its equipment and services.