New York, Feb 27, 2026, 1:58 PM EST — Regular session
- Lam Research slipped roughly 1.3% around midday, deepening Thursday’s steep decline.
- Chip stocks dropped as Nvidia’s results didn’t spark a rally across the AI sector, putting a drag on semiconductor equipment shares.
- Next week, Lam’s investor-conference slots are likely to get close scrutiny as investors look for any signs of demand.
Lam Research shares lost ground Friday, dropping 1.25% to $236.14 by midday. The chipmaking-equipment company has been under some pressure.
Lam shares tracked a wider retreat in chip names, with Nvidia’s latest results not lighting a fresh fire under the AI rally. The Philadelphia SE Semiconductor index dropped 3.2% Thursday, dragging down the Nasdaq’s tech-heavy lineup.
Investor focus has shifted: they’re after proof that all this spending delivers results. “This puts a focus on Nvidia’s guidance… and questions around enterprise ROI (return on investment),” said eMarketer analyst Jacob Bourne. Morgan Stanley’s Joseph Moore, for his part, pointed to those familiar worries about growth losing steam. Reuters
Lam shares slid 4.17% Thursday, finishing at $239.07—well off the intraday high of $256.68 hit on Wednesday. Applied Materials also sold off, down 4.87% for the session, as chip-equipment stocks continued to feel the squeeze from cutbacks in factory spending.
Lam, which supplies etch and deposition equipment for advanced chipmaking, put out its March-quarter guidance late last month: $5.7 billion in revenue, give or take $300 million, and adjusted earnings of $1.35 a share, plus or minus 10 cents. Both figures landed above what analysts were expecting.
But here’s the risk laid bare: if investors start to think AI infrastructure spending has already hit its high-water mark—or if it just takes more time to convert that spending into real profits—the high-beta equipment stocks could remain stuck in a rut. For Lam and its rivals, any stumble in memory demand or a squeeze in customer budgets tends to show up quickly in tool orders.
Next up for Lam: CFO Doug Bettinger is scheduled to present at the Morgan Stanley TMT Conference on March 3, then he’s on the agenda for the Cantor Global Technology & Industrial Growth Conference March 11.
Traders are tuning in for signs of shifting customer demand, keeping an eye on China exposure and margins. They’re also watching to see if the chip sector finds its footing after Nvidia’s post-earnings tumble triggered another wave of selling.
