NEW YORK, January 2, 2026, 18:16 ET — After-hours
Lam Research Corporation shares rose $13.86, or 8.1%, to $185.06 in after-hours trade on Friday, extending gains from the regular session after the chip-equipment maker was added to Citi’s Large Cap Recommended list for 2026. StockStory also cited a TD Cowen price-target increase and a reiterated overweight call from Cantor Fitzgerald, with the stock setting a fresh intraday high. 1
The move matters because chipmaking-tool suppliers tend to trade as a read-through on how aggressively manufacturers plan to spend on new factories and upgrades. That spending cycle is being watched closely at the start of 2026 as investors reassess demand tied to artificial intelligence servers and memory chips.
Policy risk is also in focus. Reuters reported this week that Chinese authorities have been telling chipmakers seeking approvals for new capacity to prove at least 50% of their equipment will be domestically made, a shift that could squeeze foreign suppliers over time. 2
Citi’s “Large Cap Recommended” list is an annual basket of 20 large-cap stocks that carry the bank’s buy ratings, Business Insider reported, with Lam among the new additions for 2026. 3
Other chip-equipment names were higher alongside Lam. Applied Materials was up 3.3% and Dutch supplier ASML gained 8.7% in late trade, reflecting broader strength across the group.
The stock’s jump came as U.S. markets finished a choppy first session of the year. “Today is kind of a holiday trading day, lighter volumes,” said Jed Ellerbroek, a portfolio manager at Argent Capital, adding that “AI infrastructure is up.” 4
Lam, based in Fremont, California, sells wafer-fab equipment — the high-cost tools used inside chip factories — with a heavy presence in etch and deposition steps that shape and build layers on silicon wafers.
For investors, the near-term question is whether strong AI-driven spending can offset tighter rules and shifting procurement in China, a key market for the sector. Any signs that customers are pushing out orders or redirecting tool budgets can move shares quickly.
Traders are also looking ahead to the next results update. Nasdaq’s earnings page showed no confirmed date and an algorithmic estimate of February 4, while MarketScreener’s calendar listed a projected release date of January 28. Analysts typically focus on order momentum, gross margin and any update on regional demand.
Lam’s sharp move leaves the stock trading at record levels, raising the bar for follow-through buying when liquidity returns after the holiday week.
Before the next session, investors will be watching whether LRCX can hold above the $180 level and whether semiconductor-equipment peers maintain the bid that carried into the new year.
Macro data will also be on the radar next week, after a holiday-thinned session and rising focus on the path for U.S. interest rates — a key swing factor for high-multiple technology stocks.
For now, Friday’s rally shows buyers leaning into the view that AI and memory-related spending can keep the equipment cycle firm, even as China-related policy headlines add uncertainty to the outlook.
