Lam Research, Broadcom, Oracle Lead Q3 Growth Amid AI Demand

November 12, 2025 at 19:41 UTC

6 min read

Lam Research, Broadcom, and Oracle stock charts rising with AI demand and major contract visuals

Key Points

Lam Research (LRCX) shares surged over 115% year-to-date, driven by strong bookings and growth projections tied to AI memory requirements.
Broadcom (AVGO) reported record Q3 revenue of $16 billion, fueled by AI business growth and new large customer orders, including a $10 billion system order and a 10GW accelerator deal with OpenAI.
Oracle (ORCL) strengthened its cloud infrastructure contracts, projecting rapid revenue growth through 2030, supported by multi-cloud partnerships and AI platform innovations.
Other notable Q3 performances include AbbVie’s increased guidance, Accenture’s revenue concerns, and softness in consumer staples like Coca-Cola and Mondelez.

Lam Research’s Strong Q3 Performance and Market Position

Lam Research Corporation (NASDAQ:LRCX) has experienced significant investor interest and share price appreciation, with a year-to-date gain exceeding 115% and a one-month return near 10%. The company designs, manufactures, and services semiconductor processing equipment, specializing in deposition and etch technologies critical to semiconductor fabrication. Its fiscal 2025 revenues reached $18.44 billion, a 24% increase from the prior year, with sales distributed across Memory (42%), Foundry (45%), and Logic/Other (13%) segments. Geographically, China accounted for 34% of revenues, followed by Korea (22%) and Taiwan (19%). Lam’s systems revenues, primarily from new leading-edge equipment, totaled $11.49 billion, while customer support and other revenues comprised $6.94 billion. The company’s strong bookings data and confirmed growth projections into 2026 have bolstered market sentiment, particularly due to its equipment’s importance in memory chip production for AI applications. Despite some bearish options trading activity, professional analysts maintain positive ratings, with price targets ranging from $160 to $200. Institutional ownership remains stable, with 85 hedge funds holding shares as of Q2 2025. Lam Research’s competitive landscape includes major equipment makers such as Hitachi, Tokyo Electron, and Applied Materials. The company’s focus on advanced packaging solutions and nanoscale applications positions it well to benefit from the increasing demand for AI-related semiconductor technologies.

Broadcom’s Record Revenue and AI Infrastructure Expansion

Broadcom Inc. (NASDAQ:AVGO) reported record third-quarter revenue of $16 billion, marking a 22% year-over-year increase. The company’s AI business grew 63% to over $5 billion, with expectations for continued growth into Q4 2025. Broadcom’s product portfolio includes semiconductor chips and networking equipment essential for AI computing power, with approximately 99% of internet traffic passing through its chips. The company has secured multiple large customer orders, including a $10 billion system order and a strategic 10-gigawatt accelerator deployment agreement with OpenAI spanning 2026 to 2029. Broadcom’s XPUs, custom accelerators designed for specific AI applications, differentiate it from competitors relying on general-purpose GPUs. The company’s open ecosystem strategy for VMware Cloud Foundation (VCF) was recently advanced, featuring new AI ReadyNodes certification, ODM self-certification programs, and edge ecosystem expansion to support rugged, compact servers for industrial and remote applications. Collaborations with partners such as Cisco, Intel, OVHcloud, and Supermicro enhance Broadcom’s cloud infrastructure offerings. Broadcom’s stock has gained over 50% year-to-date, with a market capitalization of approximately $1.66 trillion. Institutional investors hold significant stakes, with insiders owning shares valued at around $19 billion, reflecting strong alignment with shareholder interests.

Oracle’s Cloud Infrastructure Growth and AI Strategy

Oracle Corporation (NYSE:ORCL) has demonstrated robust growth in its cloud infrastructure segment, with cloud revenues climbing 27% year-over-year and cloud infrastructure revenues expanding 54% in the fiscal first quarter ended August 2025. The company’s total revenues for the quarter reached $14.9 billion, supported by multi-billion-dollar contract signings and strategic partnerships with major technology firms. Oracle’s management projects cloud infrastructure revenues to grow 77% to $18 billion in fiscal 2026, with further increases to $32 billion, $73 billion, $114 billion, and $144 billion through fiscal 2030. The company’s AI strategy includes the launch of Oracle AI Database 26ai, featuring native vector search and interoperability with open standards, and the Oracle AI Data Platform, which integrates generative AI models with enterprise data. Oracle also introduced an AI Agent Marketplace and AI Agent Studio to facilitate enterprise AI deployments. The company’s multi-cloud approach embeds Oracle infrastructure within AWS, Azure, and Google Cloud environments, enhancing customer flexibility. Despite a premium valuation with a price-to-earnings ratio of 32.73, Oracle’s substantial contracted backlog and aggressive growth guidance underpin investor confidence. The stock has surged 44.5% year-to-date, outperforming the broader technology sector.

Other Q3 Highlights: AbbVie, Accenture, Consumer Staples, and Market Context

In the third quarter of 2025, AbbVie Inc. (NYSE:ABBV) reported strong financial results and increased its 2025 guidance, supported by a legal settlement extending patent protection for a key product. AbbVie’s Q3 net revenues reached nearly $15.8 billion, exceeding expectations by approximately $300 million. The company’s shares gained over 32% in the past year. Conversely, Accenture plc (NYSE:ACN) underperformed due to investor concerns about decelerating revenue growth linked to government contract cancellations and softening discretionary IT spending. Despite a 7% revenue increase in Q4 2025, Accenture’s shares declined 34.5% over the last 52 weeks. Consumer staples companies such as The Coca-Cola Company (NYSE:KO) and Mondelez International, Inc. (NASDAQ:MDLZ) faced challenges in Q3. Coca-Cola’s shares were weighed down by sluggish volume trends despite better-than-expected pricing, while Mondelez’s stock declined following cautious management commentary on U.S. demand and commodity price volatility. Abbott Laboratories (NYSE:ABT) also traded down due to disappointing financial results and downward guidance revisions, particularly impacted by challenges in its diagnostics segment in China. The broader market context includes a continued rally in the S&P 500 Index, with year-to-date returns of 13.7%, driven by growth and momentum stocks, especially those linked to AI deployment. However, the market remains sensitive to potential weaknesses in AI-related catalysts.

Key Takeaways

Lam Research’s strong bookings and AI-related equipment demand underpin its robust Q3 performance and positive analyst outlook.
Broadcom’s record revenue growth and strategic partnerships, including with OpenAI, position it as a key AI infrastructure provider with expanding ecosystem initiatives.
Oracle’s aggressive cloud infrastructure growth projections and AI platform innovations support its market leadership despite premium valuation concerns.
Mixed Q3 results among other major companies highlight sector-specific challenges amid a market rally driven by AI and growth momentum.