Lam Research Corp. (LRCX) saw its stock price tumble 5.03% in Friday's pre-market trading session, amid broader weakness in the semiconductor equipment sector.
The plunge came after rival Applied Materials (AMAT) issued a lower-than-expected sales outlook, citing weaker demand trends from China. Applied Materials' stock dropped over 7%, dragging down shares of other semiconductor equipment makers like Lam Research and ASML.
Analysts point to a slowdown in expansion plans for AI data centers and delays in adoption of latest chip manufacturing technologies like extreme ultraviolet (EUV) lithography as key factors behind the softening demand. Geopolitical tensions with China and trade restrictions are also limiting sales opportunities for semiconductor equipment firms like Lam Research.
Comments