New U.S. restrictions on chip equipment shipments to China create fresh headwinds for Lam Research amid semiconductor sector pullback

In early June 2026, Lam Research faced pressure as new U.S. restrictions on chip equipment shipments to Chinese customers coincided with Broadcom's weaker earnings outlook and rising interest-rate concerns across the semiconductor sector.

Lam Research's April quarter showed revenue of US$5,841.49 million and net income of US$1,825.46 million, with guidance for up to US$6.60 billion next quarter. However, tightening U.S.–China export constraints now represent the biggest visible risk to the company's role as an 'AI picks and shovels' supplier (equipment provider for chip fabrication).

Lam's narrative projects US$37.4 billion revenue and US$12.4 billion earnings by 2029, requiring 19.9% yearly revenue growth. Some optimistic analysts pencil in US$41.6 billion revenue and US$15.4 billion earnings by 2029, though these bullish forecasts are expected to be revisited in light of fresh U.S.–China controls.