Companies
Lam Research rallies after board approves stock buyback
Lam Research shares surged 8.2% on Friday after the chip equipment maker's board approved a $25 billion stock buyback, though the stock remains far below its 52-week high.
Quick Read
- Lam Research's board approved a new stock buyback with no expiration date and declared a quarterly dividend payable Jan. 6, 2027.
- The shares rebounded on Friday after a chip-stock selloff but remain well below their 52-week high.
- Several analysts lowered their price forecasts after the latest quarterly report while keeping positive ratings.
What did Lam Research announce?
Lam Research's (Nasdaq: LRCX) board approved a new $25 billion stock buyback, the company said on Thursday. A buyback is a company buying its own shares, which leaves each remaining share a slightly bigger slice of the business.
Why it matters: The company said the new authorization adds to what was left under its previous plan. Lam can buy shares on the open market, in private deals or through structured agreements. The program has no end date, and the company can pause or stop it at any time.
The board also declared a quarterly dividend of 33 cents per share. It is payable Jan. 6, 2027, to shareholders on record as of Dec. 2, 2026. Future dividends still require board approval. Chief Financial Officer Doug Bettinger said the plan reinforces Lam's pledge to hand cash back to shareholders, and he pointed to its ability to generate cash.
How much did the shares move?
The stock surged 8.2% on Friday to close at $200.44, up from $185.20. That gain added $19 billion to the company's stock market value, which ended the day at $250 billion.
The rebound followed a sharp selloff in chip stocks. On Friday the technology sector fund jumped 1.5%. Even so, the Nasdaq-100 tumbled 4.9% over the week.
Lam is still 53.7% below its 52-week high of $433.33, its highest price in the past year. Lam accounts for 0.29% of the value of the 500 largest U.S. companies, and its gain added $24 to $100,000 spread across them by size.
What did the latest quarter show?
Lam recently reported first-quarter adjusted earnings per share and revenue that topped the consensus, the average analyst forecast. Earnings per share is profit divided by the number of shares.
The company's own forecast ranges for second-quarter adjusted earnings per share and revenue both sit on either side of the consensus.
Several analysts lowered their price forecasts after the report while keeping positive ratings. Needham analyst Charles Shi kept a Buy rating, Mizuho analyst Vijay Rakesh kept Outperform and Morgan Stanley analyst Shane Brett kept Overweight.
What comes next?
What’s next: The dividend record date is Dec. 2, 2026, with payment on Jan. 6, 2027. The next broad market test is the October consumer price index on Nov. 10 at 8:30 a.m. ET. That inflation report shapes expectations for the Fed's next rate decision, due Dec. 9 at 2 p.m. ET.
The open question for shareholders is whether Lam's cash flow can fund both the buyback and the dividend. Its next quarterly report may show how much stock it actually repurchased.
For readers
What it could mean for you: If you own Lam Research shares directly, the buyback and dividend reach you in full, with no other holdings to offset them. Each share the company repurchases could leave your stake a slightly bigger slice of future profit. Lam may also slow or halt purchases at any time, since the plan has no end date. Shareholders on record as of Dec. 2 are due the quarterly dividend, payable Jan. 6. In a broad index fund, Lam is a small holding, and its moves may reach you far less.
Questions and answers
Why did Lam Research stock go up on Friday?
The shares rose after Lam's board approved a new stock buyback and declared a quarterly dividend, the company said on Thursday. The gain also came on a day when technology stocks rose broadly after a chip-stock selloff.
How big is Lam Research's stock buyback?
The board authorized $25 billion in repurchases, on top of what remained under the previous plan. The program has no expiration date, and the company can suspend or end it at any time.
When is Lam Research's next dividend paid?
The quarterly dividend of 33 cents per share is payable Jan. 6, 2027, to shareholders of record as of Dec. 2, 2026.
The numbers
| Lam Research (LRCX) price | $200.44 |
|---|---|
| Lam Research (LRCX) change | +8.23% |
| Lam Research (LRCX) market value | $250 billion |
| Lam Research (LRCX) 52-week high | $433.33 |
| S&P 500 change | +0.31% |
| 10-year Treasury yield | 4.86% |
Friday’s close
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