Lam Research Faces Decline in Sales for Third Consecutive Quarter

Lam Research has experienced yet another decline in sales, which marks the third consecutive quarter of poor performance. This downward trend is expected to persist in the coming months.

As a result, the company's shares took a hit, dropping 5.2% to $609.01 during after-hours trading on Wednesday. By the market's closing time, the stock was 1.2% lower. Despite this recent setback, Lam Research has seen an overall increase of 53% in its shares since the beginning of the year.

Lam Research has projected a decline in its second-quarter results and has reported a drop in first-quarter profit and revenue compared to the same period last year.

Although the Fremont, Calif.-based chip-making equipment provider managed to surpass analysts' estimates, with revenue in the first quarter amounting to $3.48 billion (above the $3.42 billion expected by analysts), its shares continued to plummet.

The company's earnings have been consistently hampered by a slowdown in the semiconductor industry. The CEO, Tim Archer, acknowledged that Lam Research is currently facing a "cyclically soft year" in terms of customers' spending on their equipment. Nevertheless, he remains confident that the company's investments in future growth will ultimately pay off.