Lam Research lifts dividend 26.9% on record chip equipment revenue
The semiconductor equipment maker raised its quarterly payout to $0.33 per share, citing a 30% surge in revenue and strong demand for artificial intelligence chips.
Lam Research has increased its quarterly dividend by 26.9%, raising the payout from $0.26 to $0.33 per share. The decision follows the company’s announcement of record revenue for the June quarter, driven by sustained demand for artificial intelligence chips and other semiconductor products.
The company reported that revenue rose 30% year-over-year to a record $6.72 billion. Adjusted earnings per share increased 34% to $1.82, exceeding Wall Street expectations. Lam Research has now raised its dividend for 12 consecutive years, maintaining a conservative payout ratio of 17.75%.
The new dividend is scheduled to be paid on 14 October 2026 to shareholders of record as of 23 September 2026. While the forward yield of approximately 0.32% positions the stock as a dividend-growth investment rather than a high-income play, the payout is well covered by the company’s earnings.
Shares of Lam Research have surged 186% over the past 52 weeks, significantly outperforming the S&P 500 Index, which gained 19% over the same period. The stock currently trades at 32.3 times forward earnings, a premium to the sector average of roughly 22 times.
Looking ahead, Lam Research expects revenue of $8.1 billion and adjusted earnings per share of $2.15 for the September quarter. The company also plans to invest more than $3 billion over the next five years to expand its global research and development lab network, including a new facility in Tualatin, Oregon.
Analysts maintain a consensus “Strong Buy” rating on the stock, with an average price target of $372.45. This suggests potential upside of about 30% from current levels, supported by rapid earnings growth and leadership in equipment for advanced AI and memory chips.
