Lam Research plunges ~12% Thursday as analysts trim targets; chip-equipment selloff spreads (SOX -6.7%)
What happened
Lam Research (LRCX) tumbled about 11.8% Thursday — far beyond Wednesday's ~5% after-hours dip — after analysts trimmed price targets following the company's warning that near-term supply constraints could push some December-quarter shipments into March 2027, with guidance for adjusted fiscal Q2 earnings slightly weaker than expected. The crash ignited a broad semiconductor selloff: the PHLX Semiconductor Index dropped 6.7%, with KLA and GlobalFoundries down more than 9%, and Marvell, Intel and AMD each falling more than 8%. Motley Fool noted midday that Lam's supply-chain warning had become the catalyst for the day's AI-stock jitters, and the semiconductor rout fed the Nasdaq's worst session since June (-2.6%), its lowest close in over a month, with the S&P 500 falling 1.2% and both dipping below their 50-day moving averages.
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Start your free 14-day trialWho’s affected
- Lam Research (LRCX) — down ~12% on target trims and shipment push-out warning; chip-equipment peers KLA (KLAC), Applied Materials (AMAT) — read-through on supply-chain constraints; memory: Micron (MU) -6.3%; broad semis: Nvidia (NVDA) -4.4%, AMD -8.1%, Intel (INTC) -8%, Marvell (MRVL) -8%+
- AI-infrastructure names broadly via the capex/debt-funding rotation narrative
- PHLX Semiconductor Index -6.7%.
Sources