New York, February 17, 2026, 13:15 EST — Regular session
- LRCX slips roughly 0.3%, with chip stocks once more showing a mixed midday pattern.
- Investors are questioning if the AI boom will still be fueling equipment orders by 2026.
- Mark down March 4 for the dividend record date, and March 6 will see the COO handover.
Lam Research Corp (LRCX) dipped 0.3% to finish at $234.84 on Tuesday, bouncing between $229.06 and $237.81 during the session—a swing of about 3.7%. Monday’s close was $235.53.
The latest bounce in the Dow—up roughly 0.1%—came as tech stocks took another hit, following last week’s AI-driven tumble. The S&P 500 hung near unchanged, while the Nasdaq dipped 0.1% by late morning. “It’s an indiscriminate selling in all things tech,” said Art Hogan, chief market strategist at B Riley Wealth. (Reuters)
Semiconductor stocks have come under the microscope, with traders hashing out just how sustainable the AI expansion really is—and what potential fallout it brings. “The conversation about AI… is continuing,” said Peter Tuz, president of Chase Investment Counsel, flagging job-market worries as one factor hitting sentiment. (Reuters)
For Lam, that’s a key issue: its main business is selling the machines chipmakers need to ramp up production. If investors start doubting how much money is really flowing into AI, the equipment makers like Lam usually get hit first.
Lam posted December-quarter revenue of $5.34 billion and reported non-GAAP diluted earnings per share at $1.27. For the March quarter, the company forecast revenue at $5.70 billion, give or take $300 million. China accounted for 35% of sales in the December period, a proportion investors track closely amid ongoing export policy concerns. (Lam Research Newsroom)
Peers have been shaping the mood, too. Last week, Applied Materials projected second-quarter revenue and earnings ahead of expectations, citing demand from AI processors and a constrained memory market—news that sent chip-equipment stocks higher. “Memory… is a greater growth driver near-term,” said Rothschild & Co. Redburn analyst Timm Schulze-Melander, referring to capex. (Reuters)
Lam has some upcoming milestones to watch. The company tapped Sesha Varadarajan as chief operating officer, with the appointment taking effect March 6, while Pat Lord is heading for retirement. CEO Tim Archer said the moves are about picking up the pace, noting that “we are increasing velocity across our operations.” (Lam Research Newsroom)
The company isn’t neglecting its capital-return efforts. Lam’s board gave the nod to a quarterly dividend of $0.26 per share, set for payout on April 8 to investors registered by March 4. (Lam Research Newsroom)
Still, the risk side of the equation hasn’t disappeared. Pressure out of Washington continues. Earlier this month, U.S. lawmakers called on the State and Commerce Departments to ramp up restrictions on China’s access to advanced chipmaking tools, and floated the idea of curbing service for equipment already inside the country. That’s a threat for suppliers doing significant business in China. (Reuters)
Investors aren’t zeroed in on just one number now; the focus shifts to a string of upcoming markers. U.S. inflation data drops soon, with Fed officials set to weigh in this week too. For Lam, the timing is tight — March 4 marks the dividend record, then just two days later, the COO role changes hands. The real test: can Lam’s March-quarter demand sustain through to quarter-end?
