Lam Research warns of supply‑chain constraints, cuts December‑quarter revenue guidance
Lam Research said near‑term supply‑chain bottlenecks would limit equipment shipments and lowered its December‑quarter revenue outlook to about $8.6 billion. The comment triggered a broad sell‑off in semiconductor equities, with the Philadelphia Semiconductor Index falling 6.72% and the sector losing roughly $200 billion in market value. Lam’s shares dropped about 11‑12% after the guidance miss, while peers such as Nvidia, AMD, Marvell and Intel also fell sharply.
Why it matters
The reduced revenue guidance signals lower near‑term equipment demand, which may depress earnings expectations for chip makers that rely on Lam’s tools (the company’s own note says guidance would have been higher without the constraints). The sector‑wide price decline erodes billions of dollars of market capitalisation, affecting investors holding semiconductor stocks.
Key facts
- 1Lam Research projected December‑quarter revenue of approximately $8.6 billion, slightly above analysts’ estimate of $8.57 billion. thearabianpost.com
- 2Lam reported record first‑quarter revenue of $8.22 billion, up 54% year over year. thearabianpost.com
- 3Adjusted earnings were $2.20 per share for the quarter. thearabianpost.com
- 4Adjusted operating margin was about 40 % for the quarter. thearabianpost.com
- 5Lam Research shares fell 11.8% to $230.15 after the guidance announcement. thearabianpost.com
- 6The Philadelphia Semiconductor Index dropped 6.72% on October 22, wiping roughly $200 billion from market value. techtimes.com
Summary written by AlphAI AI Desk from 6 of 6 sources. Not investment advice. Figures are as stated by the linked sources.