New York, Feb 13, 2026, 11:52 (EST) — Regular session
Lam Research (LRCX.O) bounced 2.3% to $236.72 late Friday morning, clawing back some ground after Thursday’s steep slide and edging closer to this week’s highs. Shares moved in a range from $232.22 up to $242.77 during the session.
The sector rallied after Applied Materials projected revenue and profit for the quarter that topped Wall Street’s expectations, crediting AI-driven demand and a firmer memory market. CEO Gary Dickerson described the forecast as “fueled by the acceleration of industry investments in AI computing.” Morningstar analyst William Kerwin flagged “a massive wafer fabrication equipment growth cycle” coming over the next three years. Those machines, used to etch and layer materials onto silicon wafers, are essential for making chips. 1
Broader markets clawed back a bit of ground as U.S. inflation numbers landed softer than forecasts, pulling Treasury yields down and stoking fresh optimism for potential rate cuts. “The trend in disinflation continues,” wrote Michael Metcalfe, head of macro strategy at State Street Markets, in a note picked up by Reuters. 2
Applied Materials jumped 8.8%, while KLA added 0.5% and ASML ticked up 0.3% during U.S. hours, as most semiconductor equipment stocks leaned higher. Among chip ETFs, iShares Semiconductor ETF (SOXX) gained roughly 1%. VanEck Semiconductor ETF (SMH) edged higher by 0.7%.
Lam shares finished Thursday off 1.6% at $231.29, with the Nasdaq shedding over 2% after tech names lost ground before Friday’s inflation data. Chip stocks, already on edge, were set up for sharp swings depending on whether interest rates looked poised to drop sooner or remain elevated. 3
Lam, a major name in chipmaking equipment, usually moves in step with chipmakers’ capex decisions—essentially, how much they’re willing to spend on plants and machinery. Right now, much of the bullishness hinges on AI servers continuing to drive demand for high-bandwidth memory (HBM), the speedier memory found in a lot of AI chips, and whether that appetite sticks around long enough to keep tool orders flowing. 4
Yet the same old risk hangs over the rally: sky-high expectations, and the sector can tumble fast if investors start to question whether hefty AI investments will actually deliver. “You’re discounting a lot of earnings streams that have to come to fruition,” said Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management, in comments to Reuters. 5
With U.S. markets shuttered Monday, Feb. 16 for Presidents Day, traders face a longer pause before the next shot at momentum. Trading won’t pick up again until Tuesday, Feb. 17. 6
