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Key Facts on Semiconductor Sector Performance
The semiconductor sector has shown strong performance in 2025, with the PHLX Semiconductor Sector index up 26%, double the S&P 500‘s gain. This growth is largely attributed to the increasing demand for chips used in artificial intelligence (AI) applications, contributing to revenue increases for companies like Nvidia and Broadcom.
Lam Research (NASDAQ: LRCX) has significantly outperformed its competitors, with shares soaring 84% this year and a 23% revenue growth to $18.4 billion for the fiscal year ending in June 2025. The company anticipates a 25% year-over-year revenue increase to $5.2 billion and 40% growth in adjusted earnings per share to $1.20 in the upcoming quarter.
Sales in the semiconductor equipment sector are expected to rise by 7% this year to over $125 billion, while capital expenditures by major tech companies are projected to increase by 63% to $364 billion, further propelling demand for equipment manufactured by Lam Research.
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