May 21 (Reuters) - Lam Research's ( LRCX ) 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.