| | | Are LRCX and AMAT the "new Consumer Staples" companies but in the hottest AI market?
It hit me the other day that all these new, expensive machines will grow the replacement part and consumables business... I think before massive inflation, TP and other companies that sell things we buy on a regular basis got a high PE... it is what has driven the software companies to sell subscriptions... With secure, recurring revenue, PE can often go to 30 or higher...
So I Axed AI:
"what percentage of lam research sales are for consumables and materials?"
AI Overview
In fiscal year 2025, Customer Support Business Group (CSBG) revenues—which include spares, consumables, service, and upgrades—accounted for approximately
38% to 40% of Lam Research's total revenue.
This segment provides a recurring, high-margin revenue stream for the company, complementing its primary "System" sales of semiconductor manufacturing equipment.
Key Revenue Breakdown Data (Fiscal 2025):
- Customer Support & Other (Consumables/Spares/Services): ~38% ($6.94 billion)
- System Revenue (New Equipment): ~62% ($11.49 billion)
Recent Trends:
- For the quarter ended September 29, 2024, service and spares made up 40.2% of revenue.
- The CSBG segment is expanding due to a large, growing installed base of machines, which exceeded 100,000 units in 2025.
- Lam Research expects this service-related revenue to continue growing as part of its long-term strategy.
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