Lam Research Corporation (LRCX), a leading supplier of semiconductor manufacturing equipment, saw its stock surge 8.58% in intraday trading on Thursday, following its strong fiscal second-quarter results and an upbeat outlook driven by robust demand for advanced chipmaking solutions fueled by the artificial intelligence (AI) boom.

The company's strong performance was driven by the increasing adoption of AI technologies and the growing demand for high-performance chips across various sectors, including data centers, cloud computing, and autonomous vehicles. As a critical supplier of deposition and etch equipment, Lam Research is well-positioned to benefit from the industry's shift towards more complex chip architectures and advanced packaging solutions.

For the quarter ended December 29, 2024, Lam Research reported revenue of $4.38 billion, surpassing analyst estimates and reflecting a strong execution amid a pivotal moment for the semiconductor industry. The company's non-GAAP gross margin stood at 47.5%, while non-GAAP earnings per share came in at $0.91, both exceeding expectations.

Looking ahead, Lam Research provided an optimistic outlook for the third fiscal quarter, forecasting revenue in the range of $4.65 billion, plus or minus $300 million, and non-GAAP earnings per share of $1.00, plus or minus $0.10. This guidance surpassed analyst expectations and reflects the company's confidence in the continued growth of the semiconductor industry, particularly in the areas of AI and advanced packaging technologies.

"Lam is executing at a high level at a pivotal moment for semiconductor manufacturing. Increasing demands on chip performance play into Lam's strengths, with advanced deposition and etch applications set to comprise a growing share of WFE," said Tim Archer, Lam Research's President and Chief Executive Officer.