New York, January 29, 2026, 18:08 EST — After-hours
Lam Research (LRCX.O) shares climbed 3.6% to $248.17 in after-hours trading Thursday, building on gains sparked by the chipmaking tools supplier’s upbeat outlook. During the regular session, the stock fluctuated between $236.85 and $254.50.
The guidance is crucial since Lam occupies the center of a spending cycle investors now see as a gauge for how aggressively chipmakers are investing in advanced memory and cutting-edge logic. The equipment sector has grown increasingly reactive to any indication that orders are expanding beyond just a handful of “AI winners.”
Lam sells etch and deposition systems that build chips on silicon wafers, the slices of silicon turned into semiconductors. When factory investment ramps up, Lam’s revenue—and its stock—can surge just as fast.
Late Wednesday, the company projected revenue for the March quarter at $5.7 billion, plus or minus $300 million, and adjusted earnings of $1.35 per share, with a 10-cent margin, both beating analysts’ estimates of $5.34 billion and $1.20, according to LSEG data. It also posted December-quarter revenue of $5.34 billion and adjusted earnings of $1.27 per share, surpassing forecasts of $5.26 billion and $1.17. (Reuters)
Lam’s ties to memory tech have kept it front and center for many traders, as high-bandwidth memory (HBM) — a stacked DRAM type used in AI accelerators — pushes for additional layers and finer manufacturing processes. More steps typically translate into a greater demand for tools.
Lam reported that China made up 35% of its revenue in the December quarter, with Taiwan and Korea each providing 20%. CEO Tim Archer highlighted that the company’s growing portfolio is “enabling the market’s transition to smaller, more complex three-dimensional devices and packages.” (PR Newswire)
During the earnings call, Archer told analysts he expects industry spending on wafer fab equipment—the pricey tools for chip production—to hit roughly $135 billion in 2026. He noted demand will probably be “second-half weighted.” CFO Doug Bettinger projected a March-quarter gross margin around 49%, plus or minus one percentage point. (The Motley Fool)
Other companies are echoing a similar story. KLA (KLAC.O), known for its process control tools that measure and inspect chips during production, beat quarterly expectations on Thursday. It projected March-quarter revenue near $3.35 billion, with a $150 million margin either way. CEO Rick Wallace pointed to AI-driven demand as a key growth factor behind investments in foundry, memory, and advanced packaging. (KLA Corporation)
But the situation can shift quickly. A hiccup in customer factory expansions, new export limits related to China sales, or a wider tech sell-off could all drag down orders and squeeze margins—particularly if spending remains uneven and weighted toward the later part of the year.
Traders will eye chip-equipment forecasts alongside U.S. inflation data next session, with the December Producer Price Index landing Friday at 8:30 a.m. EST. (Bureau of Labor Statistics)
Applied Materials (AMAT.O) is set to report its fiscal first-quarter earnings on Feb. 12, with the call scheduled for 4:30 p.m. ET. (Nasdaq)
