New York, Feb 4, 2026, 12:17 EST — Regular session
Lam Research (LRCX.O) shares dropped 8.6% to $210.33 by midday Wednesday, deepening the slump in semiconductor stocks and erasing earlier gains. The stock fell $19.77 from Tuesday’s closing price, hitting a session low at $210.33.
The slide is significant since Lam occupies an early spot in the chip supply chain, with its stock often reacting to changes in risk appetite and forecasts for chipmakers’ capital expenditures. On Wednesday, sentiment soured once more as a software-driven tech selloff weighed on the Nasdaq, and Advanced Micro Devices fell following a cautious forecast. 1
Lam made news Tuesday with leadership changes: COO Patrick J. Lord plans to retire March 6. Stepping into the role is Sesha Varadarajan, now senior vice president heading the global product group. CEO Tim Archer emphasized the shift aims to “increase velocity across our operations.” 2
Lam announced it has named Cadence Design Systems CEO Anirudh Devgan to its board. “Anirudh is one of the industry’s foremost authorities in EDA and virtualization,” said board chair Abhijit Talwalkar. 3
A regulatory filing revealed Lam corrected its Feb. 3 current report after attaching the wrong version of a press release as an exhibit. It also noted Devgan joined the board’s Innovation and Technology Committee, and that the board increased in size by one member. 4
Lam and French research institute CEA-Leti announced a fresh multi-year deal this week to work on “Specialty Technology” devices, including sensors, RF components, and photonics. “The opportunities for Specialty Technology are immense,” said Vahid Vahedi, Lam’s chief technology and sustainability officer. 5
The decline seemed tied to the sector rather than any one company. Applied Materials (AMAT.O) dropped 7.7%, ASML (ASML.O) slid 4.2%, and KLA (KLAC.O) gave up 3.2%. The VanEck Semiconductor ETF (SMH.O) also took a hit, falling 4.3%.
AMD’s decline amplified the pressure. The stock slid roughly 13% following the chipmaker’s forecast of softer sales, fueling skepticism over its pace of scaling the AI-chip business compared to Nvidia. 6
Here’s the straightforward risk: semiconductor equipment is cyclical, and short-term moves often reflect positioning and macro news more than underlying fundamentals. When chipmakers pull back on orders, tool suppliers get hit quickly.
Lam’s next checkpoint comes on March 6, with the COO handover and more clarity expected on how duties will be divided across product, manufacturing, and customer support. Investors are also keeping an eye on whether this week’s tech selloff eases or hardens.
