New York, January 23, 2026, 18:40 EST — After-hours trading
- Lam Research slipped 1.3%, closing at $217.94, marking its third straight session lower
- Chip-related stocks remain volatile following Intel’s gloomy guidance; equipment makers show mixed results
- Attention shifts to Lam’s January 28 earnings, looking for clues on chipmaking tool demand
Shares of Lam Research Corporation dropped 1.3% to $217.94 on Friday, holding that price in after-hours trading. The stock hit a session low of $213.98, with roughly 10.1 million shares exchanged. Applied Materials climbed 1.1%, KLA edged up 0.8%, and ASML slipped 0.4%.
This shift is significant as traders reassess all things linked to chip spending ahead of a busy earnings week. Lam, which sells wafer fabrication equipment—the gear chipmakers rely on to create chips on silicon wafers—reports results next week, marking one of the closest milestones.
Friday’s pullback follows a rally that took the stock near new highs earlier this week. That puts extra weight on the upcoming guidance, particularly around tool demand linked to AI servers and advanced memory.
U.S. markets found some footing near the close, though Intel’s disappointing forecast rattled investors. Janus Henderson portfolio manager Julian McManus described this as a “show-me” phase, insisting companies must “put up the revenue growth” to back the AI spending narrative. Reuters
More brokerage moves surfaced in the tool sector. Deutsche Bank bumped Applied Materials up to a “buy” rating and raised its price target. Analyst Melissa Weathers cited a robust wafer-fab-equipment outlook stretching into 2026 and 2027. Investing.com
Lam closed Friday roughly 7.7% under its 52-week peak hit just a day before, MarketWatch reports. Volume was also below its 50-day average, according to the same source.
One boost for bulls came from a Zacks-driven rating update. Zacks upgraded Lam to a “Strong Buy,” pointing to rising earnings estimates over the last three months. Nasdaq
The real challenge lies ahead. Wall Street analysts forecast Lam to report quarterly earnings of $1.17 per share, with revenue close to $5.23 billion, according to a Zacks preview cited by Finviz.
Analysts pointed to “systems” revenue — sales of new tools — and customer-support revenue as crucial metrics in the report. They also highlighted the breakdown of Lam’s equipment demand between foundry and memory clients. Changes in that mix can reveal where chipmakers are directing their spending.
There’s a risk here. Should Lam’s outlook suggest customers are pushing out delivery timelines, or if the management’s tone on next quarter’s orders weakens, this recent dip in the stock could deepen into a wider sell-off for equipment stocks. Intel’s recent slip is already adding to those worries.
Lam plans to release its earnings and hold its December-quarter conference call on Wednesday, Jan. 28, at 2:00 p.m. PST (5:00 p.m. EST). Investors will be watching that call closely, especially for the company’s forward guidance.
