Lam Research shares slipped in after-hours trading on December 29, 2025, marking a notable moment for the semiconductor sector just as investors turned their attention to the final days of the year and the Federal Reserve’s latest signals. The chip-equipment maker’s stock fell about 1.2% to $175.87, a move that snapped a two-session winning streak and left it roughly 2% below its 52-week high, according to MarketWatch. The day’s trading range was relatively tight, with shares moving between $174.76 and $179.16 as approximately 6.7 million shares changed hands—well below Lam’s recent average volume.
The timing of this pullback is significant. Lam Research’s fiscal quarter ended on December 28, 2025, meaning investors are keenly awaiting the company’s next earnings report and, perhaps more importantly, its forward-looking guidance. In its last outlook, Lam projected December-quarter revenue of $5.20 billion, plus or minus $300 million, and net income per diluted share of $1.15, give or take 10 cents, as reported by the Lam Research Newsroom. With these numbers in mind, the market is now watching closely to see how actual results stack up against both company forecasts and Wall Street expectations.
But Lam’s move was not an isolated event. The entire technology sector, especially heavyweight tech and AI-linked stocks, saw a pullback on December 29. Reuters noted that Wall Street’s main indexes ended lower, with the S&P 500 falling 0.1%—its third consecutive session of decline. The Nasdaq Composite slipped 0.24% to close at 23,419.08, while the Dow Jones Industrial Average shed 94.87 points, or 0.20%, ending at 48,367.06. These losses were largely attributed to weakness in tech stocks, including big names like Nvidia and Palantir Technologies, both of which posted back-to-back losing sessions.
Despite the recent dip, it’s worth noting that some of these tech giants have been major winners in 2025. Nvidia, for example, has risen 39% over the year, while Palantir has surged 139%, and Advanced Micro Devices (AMD) has climbed 78%, according to CNBC. The broader iShares Semiconductor ETF (SOXX) was also down 0.2% on December 29, with mixed performance among its constituents—Applied Materials rose 0.4%, KLA fell 1.5%, and ASML slipped 0.6%.
For Lam Research, these market moves are closely tied to broader trends in semiconductor spending and capital expenditure, or capex. As a global supplier of wafer fabrication equipment and services—the tools used to build integrated circuits—Lam’s fortunes are directly linked to how much its customers, including memory makers, foundries, and integrated device manufacturers, are willing to spend on new factories and equipment. Reuters emphasized that investors are especially interested in any signs of shifts in customers’ capex, as these directly impact tool orders and, by extension, growth expectations for 2026.
“It’ll turn out to be a buying opportunity,” said Hank Smith, director and head of investment strategy at Haverford Trust, referring to the recent tech retreat. His optimism is echoed by others in the industry. Bill Northey of U.S. Bank Asset Management told CNBC, “The clear early beneficiaries to this have been more the picks-and-shovels components, where we’re looking at semiconductors and the main primary feed stocks into the buildout.” Northey added, “We believe that as we move into 2026, it may actually be more the beneficiaries of the application of artificial intelligence who begin to see some of those productivity gains and see corporate earnings acceleration.”
Northey’s perspective points to a possible broadening of market leadership in the coming year. “We do believe that there is some opportunity for broadening that exists in 2026 where we have had some relatively narrow leadership through the course of this year,” he said. That’s good news for companies like Lam Research, which often serve as a bellwether for the entire chip-tool sector. Their stock is sometimes viewed as a higher-volatility proxy for sentiment around semiconductor spending, meaning that shifts in the company’s outlook can ripple across the industry.
Yet, the technical picture for Lam’s shares remains somewhat constrained. Monday’s failure to hold above the high-$170s kept the stock pinned in a familiar trading range. Analysts suggest that a breakout from this band will likely require fresh catalysts—such as a surprise in company guidance or a significant industry development—rather than the usual year-end portfolio rebalancing. For now, Lam’s stock is expected to move in tandem with the broader chip-tool group as the market enters a holiday-thinned week, with many investors already looking ahead to the next checkpoints: the Federal Reserve’s meeting minutes and the company’s own earnings update.
The macroeconomic backdrop is also in flux. The release of the Federal Reserve’s December meeting minutes reinforced expectations for further interest-rate cuts in 2026, even as policymakers appeared divided over the timing and aggressiveness of future moves. The minutes revealed, “With respect to the extent and timing of additional adjustments to the target range for the federal funds rate, some participants suggested that, under their economic outlooks, it would likely be appropriate to keep the target range unchanged for some time after a lowering of the range at this meeting.”
Treasury yields responded by climbing, with the US 10-year rate hovering around 4.12%. The Bloomberg dollar spot index also rose, underscoring a cautious tone in global markets. Meanwhile, silver and gold bounced back after plunging from all-time highs, reflecting ongoing volatility in commodities as investors reassess risk and opportunity at year’s end.
Looking ahead, all eyes are on Lam Research’s upcoming earnings report and the company’s guidance for 2026. Investors will be scrutinizing not just headline revenue and profit numbers, but also the breakdown between new systems and services revenue, as well as margin guidance—details that will help analysts model future cash flow. Commentary on advanced memory and leading-edge logic demand will be especially important, as these segments are expected to drive industry growth in the coming year.
Ultimately, Lam’s performance—and that of the broader semiconductor sector—remains closely tied to the evolving landscape of technology investment, AI adoption, and global macroeconomic policy. As the year draws to a close, the company’s next moves will help set the tone for what could be another pivotal year in the world of chips and high-tech manufacturing.
