$NVDA can drive AI chip demand. $TSM can expand manufacturing capacity.
But who gets paid when the factories are actually built?
That's the question for $LRCX ahead of its October 21 results.
Lam Research reported $6.72B in revenue in its latest reported quarter, with a 37.4% GAAP operating margin.
But operating cash flow was $1.46B against $2.28B in net income.
That gap doesn't prove a lasting problem. It does show why earnings alone aren't enough to judge an equipment supplier.
As
@Morpheu5Watcher highlights, having demand for more chip capacity isn't the same as having factory space, installing equipment and collecting cash.
Lam guided for September quarter revenue of $7.7B – $8.5B.
Its upcoming results should tell us more about whether the equipment spending cycle is translating into actual business performance.
Will $LRCX capture the next wave of AI capex from $TSM and the wider chip industry, or could installation delays and cash conversion complicate the trade?