NEW YORK, February 1, 2026, 13:56 (EST) — Market closed.
- Lam Research shares dropped 5.9% on Friday, ending the day at $233.46.
- The move came after strong quarterly guidance, though chip-equipment stocks wavered amid a volatile broader market.
- As markets reopen, investors turn their attention to big-tech spending cues and Friday’s U.S. jobs report.
Lam Research shares fell 5.9% to close at $233.46 on Friday, marking a steep drop after a turbulent run for chip-related stocks. U.S. markets remain closed Sunday and will reopen Monday, Feb. 2.
Lam’s forecast raised expectations for a sector fueled mostly by “AI infrastructure” spending. The late-week selloff punctured some of that optimism. Heading into the new week, investors want proof that chipmaking tool demand is still on the rise and that broader economic concerns won’t drown it out.
Wall Street’s key indexes closed down Friday after investors weighed Donald Trump’s pick of Kevin Warsh to head the Federal Reserve, plus fresh inflation numbers and earnings reports. The Nasdaq dropped 0.94%, while chip-equipment maker KLA Corporation took a steep hit. (Reuters)
Lam rattled the market Wednesday by projecting March-quarter revenue and adjusted profit that top Wall Street’s forecasts, fueled by strong demand for chipmaking equipment linked to advanced computing. The company expects adjusted earnings of $1.35 per share, plus or minus 10 cents, and revenue around $5.7 billion, give or take $300 million. (Reuters)
Lam reported $5.34 billion in revenue for the December quarter in a Jan. 28 statement, with CEO Tim Archer noting a shift in the industry toward “smaller, more complex three-dimensional devices and packages.” The company also disclosed that China made up 35% of its revenue during the period. (Lam Research Newsroom)
During its earnings call, Archer told investors it “delivered December quarter revenues ahead of the midpoint of our guidance,” driven by stronger sales of deposition and etch tools in advanced logic and memory segments. (The Motley Fool)
Lam’s retreat coincided with a broader re-evaluation in the chip-tool sector. Following KLA Corporation’s Thursday earnings, Michael Ashley Schulman of Running Point Capital Advisors noted the stock “had already sprinted into the print,” pushing expectations above consensus levels. (Reuters)
Next week, the focus may shift away from Lam itself and onto the companies financing wafer-fab expansions—and their supply chains. Jim Baird of Plante Moran Financial Advisors cautioned that stocks risk being “punished” if high expectations fall short. Sid Vaidya from TD Wealth noted investors haven’t observed any signs that AI-related capital expenditure will “see any letup.” (Reuters)
Friday’s U.S. nonfarm payrolls report for January, set for release at 8:30 a.m. ET, stands as the main macro driver. Traders lean on it to adjust rate forecasts, often triggering swings in high-growth tech stocks. (Bureau of Labor Statistics)
The risk scenario remains straightforward: Lam’s forecast covers a broad spectrum, and demand for chip equipment can swing sharply if buyers hold back or export restrictions tighten on key markets. A steady session Monday would be a plus; another widespread selloff would definitely hurt.
Investors will next get a sector update on Feb. 12, when Applied Materials releases its earnings after the market closes. This report often serves as a key gauge to see if Lam’s optimistic outlook on wafer-fab spending is gaining traction. (Applied Materials Investor Relations)
