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Lam Research sets 2028 revenue target of $25-$27 billion amid AI-driven WFE growth
Sunday, December 28, 2025 at 12:48 PM
Lam Research has set a revenue target of $25 billion to $27 billion by 2028, representing a 7-10% CAGR from 2025. The company also targets $30 billion in revenue as the total semiconductor industry reaches $1 trillion. While AI demand and memory pricing are accelerating industry growth toward that $1 trillion mark by 2026, Lam Research's revenue realization may lag behind due to the time required for under-construction fabs to translate into equipment orders.
Context
Lam Research has set an ambitious revenue target of $25 billion to $27 billion by calendar year 2028, representing a 7% to 10% CAGR from its 2025 baseline. The company eventually expects to reach $30 billion in annual sales as the global semiconductor industry scales toward $1 trillion. While AI demand and surging memory prices could push the broader sector to that $1 trillion mark as early as 2026, Lam Research anticipates a more gradual revenue realization. This is primarily due to the extended lead times required for the numerous fabrication facilities currently under construction to become fully operational and finalize equipment orders.
This guidance highlights Lam Research’s exposure to the increasing capital intensity of the AI supply chain. While volatile memory pricing may create short-term "noise" in equipment spending metrics through 2026, the long-term trajectory remains tied to the massive infrastructure build-out for advanced computing. For investors, the successful execution of these targets hinges on the timing of new fab completions and the company's ability to capture a high share of wafer fabrication equipment spending as the industry matures toward its 2028 objectives.
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