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. 1
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.” 2
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. 3
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. 4
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. 5
