New York, Jan 29, 2026, 11:16 EST — Trading underway in the regular session.
- Lam Research shares slipped roughly 0.9% in late-morning trading following a volatile start.
- Late Wednesday, the chipmaking equipment supplier projected March-quarter revenue and adjusted profit that topped Wall Street estimates.
- Investors are closely monitoring if AI-driven spending, particularly on memory, is evolving into steady orders for tools.
Lam Research shares fell Thursday, erasing earlier gains from a day after the chipmaking equipment supplier posted a March quarter forecast that beat expectations. 1
Lam’s guidance stands out as a clear indicator of whether chipmakers are still ramping up factory spending driven by AI, and how quickly that boost is hitting memory capacity. The company forecasted March-quarter revenue around $5.7 billion, with a $300 million margin, and adjusted earnings at $1.35 per share, plus or minus 10 cents. Both figures beat analyst estimates tracked by LSEG. 2
Lam’s results for the December quarter topped forecasts. Revenue hit $5.34 billion, with adjusted earnings at $1.27 per share, the company said in a release. CEO Tim Archer highlighted a move toward “smaller, more complex three-dimensional devices and packages,” driven by AI workloads forcing chipmakers to revamp their production lines. 3
China made up 35% of revenue in the December quarter, according to the release, with Taiwan and Korea each contributing 20%. Investors watch these regional shifts closely, given how rapidly demand can change. 4
Lam shares ended Wednesday at $239.58, having peaked earlier in the day at $243.99, per the company’s historical pricing page. 5
Thursday’s action saw a notable shift away from some tech stocks. The Nasdaq dropped over 1% earlier, pressured by earnings from major tech players and concerns over AI development costs. Microsoft slipped following its latest results. 6
Semiconductor equipment stocks have seen wider activity this week following positive signals from the chip supply chain. ASML’s order book and stronger near-term demand expectations have boosted sentiment. 7
Adjusted earnings, also known as non-GAAP, strip out specific items that companies argue mask true performance. Traders zero in on these adjustments to better gauge margins and cash flow against the upcoming quarter’s shipment trends.
Lam’s setup isn’t one-sided. Memory spending can flip fast, and even big forecast beats might get sold off if investors suspect demand is being pulled forward or if customers delay tool installations later in the year.
Attention now turns to hitting the March-quarter targets — the period closes on March 29 — and if management continues to highlight steady tool demand driven by AI-focused memory and advanced packaging.
