Key Highlights

  • Lam Research shares closed down 11.76% at $230.15, the worst performer in the S&P 500.
  • September-quarter revenue was a record $8.22 billion, with adjusted EPS of $2.20.
  • Supply-chain constraints capped December-quarter guidance at about $8.6 billion.
  • Several analysts trimmed price targets but kept bullish ratings on the stock.

Lam Research (NASDAQ:LRCX) plunged on Thursday, 22 October 2026, closing down 11.76% at $230.15, the worst performer in both the S&P 500 and the Nasdaq 100. The decline came even though the company had just reported record September-quarter results, and it left the stock about 46% below its June record close.

A Record Quarter That Still Disappointed

Lam Research's September-quarter revenue was a record $8.22 billion, with adjusted earnings per share of $2.20 and its first operating margin above 40%. Those results failed to satisfy elevated expectations built up after a strong run in the shares. The chief financial officer said the company's $8.6 billion December-quarter guide would have been higher without supply-chain constraints, with some shipments slipping into March, and that China's 35% share of revenue is expected to fall significantly.

Analysts Trim Targets but Stay Bullish

Several analysts cut their price targets following the report while keeping bullish ratings: Needham to $290, Morgan Stanley to $339, BofA to $345, Bernstein to $350 and Mizuho to $360. Cantor, by contrast, reiterated the stock as a $500 top pick, and management cited an expectation that wafer-fab-equipment spending industry-wide will exceed $200 billion in 2027.

Part of a Broader Tech Rout

The selloff spread across a broader technology rout. The Nasdaq fell 2.6% and the Philadelphia Semiconductor Index slid 6.7% amid AI-spending worries that followed results from Meta (NASDAQ:META) and Tesla (NASDAQ:TSLA), along with higher oil prices. Lam Research shares edged lower again after hours, extending the session's heavy losses.

A Steep Drop From a June Peak

The scale of Thursday's decline is notable set against the stock's recent history: shares are now about 46% below the record close they reached in June. That context helps explain why a record quarter and still-bullish analyst ratings were not enough to prevent the stock from leading the S&P 500's decliners on the day.