New York, Jan 8, 2026, 19:16 EST — After-hours
Lam Research Corp (LRCX.O) shares slipped nearly 1%, closing at $200.96 in after-hours trading on Thursday, caught up in a wider decline among chipmakers. Applied Materials (AMAT.O) took a bigger hit, tumbling 3.6%, while KLA (KLAC.O) dropped 2.6%. Meanwhile, the VanEck Semiconductor ETF (SMH) slid roughly 1.6%.
Cantor Fitzgerald bumped up its price target on Lam to $265 from $210, keeping an “Overweight” rating in place. The firm says the next surge in wafer fabrication equipment spending is still on the horizon. Analyst C.J. Muse wrote, “Conviction remains high,” supporting an “All-In” approach on the chip-tool sector; wafer fabrication equipment, or WFE, refers to the machines that produce chips. 1
The timing is crucial since chip-equipment stocks often act as a high-beta segment of U.S. tech, reacting sharply to changes in risk appetite. U.S. stock indexes dipped on Thursday, pulled down by major tech players, while investors awaited Friday’s nonfarm payrolls report for hints on where interest rates might head. 2
Lam has dropped for two days in a row, closing roughly 4.5% under its 52-week peak of $210.45, according to MarketWatch data. After the recent surge, traders are now eyeing whether it can stay above the $200 mark ahead of the next big move. 3
For Lam, the immediate concern isn’t the daily tape but what customers reveal about capital spending — the budgets chipmakers allocate for new equipment and factory overhauls. Shifts in orders and the speed of memory and logic investment usually surface first in toolmaker reports.
But the setup works both ways. A stronger-than-expected U.S. jobs report can swiftly shift rate expectations and weigh on high-multiple tech stocks, while even a small sign that chipmakers are holding back on spending can drag down equipment shares, which have already factored in a lengthy growth cycle.
Lam said it will hold its December-quarter financial conference call and webcast on Jan. 28 at 2 p.m. PST (5 p.m. EST). That’s the next event investors will watch closely to weigh the bull case. 4
