Lam Research unveils $10 billion buyback, 10-for-1 stock split

(Reuters) -Lam Research's board has approved a 10-for-1 stock split and share buyback worth up to $10 billion, the chip-making equipment firm said on Tuesday, amid signs that its business was benefiting from the AI-fueled jump in semiconductor demand.

Shares of the company gained 5% after the announcement made during the premarket hours.

The share repurchase "is consistent with our plan to return 75% to 100% of free cash flow to stockholders in the form of dividends and share buybacks", CFO Doug Bettinger said.

The stock split is expected to be effective after the market close on Oct. 2, the company said.

The company last month beat Wall Street estimates for quarterly revenue, as chipmakers ordered more of its equipment used to manufacture semiconductors for artificial intelligence applications.

(Reporting by Yuvraj Malik in Bengaluru; Editing by Shilpi Majumdar)