New York, January 30, 2026, 17:58 (EST) — After-hours
Lam Research (LRCX) dipped 5.9% to $233.46 in after-hours trading Friday, following a session that saw the stock move between $232.28 and $251.90.
The decline comes just days after Lam’s optimistic outlook raised hopes for the upcoming quarter. This is significant because the stock now serves as a barometer for whether chipmakers will continue investing heavily in new equipment.
Chipmaking equipment, also known as wafer fabrication gear—the machines behind chip production—has long been a favored play connected to AI-fueled demand. But Friday’s sell-off highlighted just how fast profits can be cashed in when jitters hit the market.
U.S. stocks ended Friday in the red, dragged down by a 0.94% slide in the Nasdaq as traders digested President Donald Trump’s nomination of Kevin Warsh for Fed chair alongside a patchy stream of earnings reports. (Reuters)
Chip tool stocks took a hit after Lam’s rival KLA Corp reported stronger-than-expected quarterly results but saw its shares sold off. Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors, noted the stock had already “sprinted into the print.” (Reuters)
Lam on Wednesday projected third-quarter revenue at $5.7 billion, with a $300 million margin on either side, beating analysts’ $5.34 billion forecast. Adjusted earnings came in at $1.35 per share, plus or minus 10 cents, compared to the $1.20 expected, according to LSEG data. The company posted $1.27 per share on an adjusted basis in the December quarter, with revenue hitting $5.34 billion, after its shares more than doubled last year. (Reuters)
CEO Tim Archer highlighted in the earnings release that Lam “delivered another strong quarter to cap a record year,” driven by growing demand for more complex chip designs and packaging. The company forecasted a gross margin near 49% and an operating margin around 34% for the quarter ending March 29. (Lam Research Investor Relations)
The filing also highlighted the company’s vulnerability to shifts in customer and regional demand: China accounted for 35% of revenue in the December quarter, down from 43% the previous quarter. The year-on-year revenue increase came mainly from higher foundry equipment sales and customer-support revenue. Traders will be watching next week for signs that the sector’s earnings tone is steadying—and whether next Friday’s U.S. jobs report (Feb. 6) shifts rate expectations once again. (SEC)
