Summary Conclusion Results exceeded expectations, with revenue and EPS surpassing the midpoint of guidance, and gross margin and operating margin exceeding the target range, primarily driven by strong gross margin execution and operational efficiency improvements.

Key Data Revenue $4.17B (+8% QoQ), CSBG revenue $1.8B (+25% YoY), gross margin 48.2% (above guidance).

Business Progress NAND has experienced a prolonged downturn, but is expected to grow in 2025 due to technology upgrades to 256/384 layers, with Lam holding a high share in the upgrade cycle; DRAM is focused on HBM and DDR5, while advanced packaging business continues to strengthen driven by AI demand; China's revenue share at 37% will decline, but other regions such as leading logic and DRAM investments remain strong.

Guidance & Outlook Next quarter revenue expected at $4.3B ± $300M, gross margin 47% ± 1pp, EPS $0.87 ± $0.10. Management expects WFE growth in 2025, with Lam's revenue growth outpacing WFE, supported by structural trends such as NAND upgrades and advanced packaging.

Risk/Positive Signals Positive signals: Management is optimistic about NAND upgrades and AI-driven advanced packaging, emphasizing that technology transitions will drive share gains. Risk: China's revenue share continues to decline, but this is viewed as normalization rather than a crisis.