Lam Research jumps 8% after a $25 billion buyback follows the chip crash

Lam Research (LRCX) stock rose 8.2% on November 6, 2026, following a 16.4% drop the previous session. The increase came after the company's board approved a $25 billion share repurchase plan and declared a $0.33 quarterly dividend. The buyback sparked a rally in the stock, which has lost 37.5% over the past month. Lam's peers also gained, with MKS rising 8.7%. The stock closed at $200.44, down from its 52-week high of $433.33.

Lam Research (LRCX) announced a $25 billion share repurchase program. The company's Q2 2027 revenue guidance is $8.2 billion to $9 billion. Sustainability of the buyback and dividend depends on free cash flow and net income trends amid component shortages and China exposure pressures.

Five companies—PayPal, General Motors, EPAM Systems, Lam Research, and Airbnb—are aggressively buying back their own stock amid market sell-offs. PayPal has spent $6 billion on buybacks in the past year, while General Motors authorized a $20 billion program. EPAM Systems raised its buyback authorization to $1.8 billion, Lam Research announced a $25 billion plan, and Airbnb authorized a $12 billion buyback.

Lam Research (LRCX) shares rose 7.43% to $198.96 after announcing a $25 billion buyback. The move follows a recent selloff in semiconductor stocks. Lam is a significant holding in major ETFs like SMH, XLK, and QQQ. The company reported strong Q1 results but has seen a 40.41% drop over the past month. Investors should monitor buyback execution, China revenue, and supply chain issues.

IonQ rose 17% after raising revenue guidance to $505M-$515M. Firefly Aerospace surged 30% on a $1.3B deal with AST SpaceMobile. Microchip Technology fell 14% due to weak guidance. Moderna gained 7% after beating earnings and raising sales outlook. Lam Research jumped 9% on a $25B buyback plan. Five9 dropped 17% after lowering EPS guidance and announcing an acquisition. Airbnb climbed 11% on strong earnings. JFrog soared 35% after raising full-year guidance.

Lam Research announced a $25 billion stock buyback program, but the authorization is flexible and non-binding. The company's board approved repurchases up to $25 billion, with no expiration date or obligation to spend the full amount. Buybacks can boost earnings per share without increasing profits, but actual repurchases may not match the authorized amount. The announcement follows a semiconductor selloff, reflecting management's capital-return flexibility.