Lam Research warns of near‑term supply constraints, cuts revenue guidance and triggers broad chip‑stock selloff
Lam Research said its quarterly revenue outlook was lowered to $8.6 billion because of near‑term supply‑chain constraints. The comment came on the company’s earnings call and was followed by a 9% pre‑market drop in Lam’s shares. The warning sparked a selloff across the semiconductor sector, with Marvell, AMD and Intel falling 8%, 8% and 7% respectively and the iShares Semiconductor ETF down about 4%‑6%.
Why it matters
The reduced revenue guidance signals lower near‑term demand for equipment, pressuring chip makers that rely on Lam’s tools. The sector‑wide price decline may affect investors’ exposure to semiconductor stocks and related ETFs.
Key facts
- 1Lam Research cut its quarterly revenue guidance to $8.6 billion, citing near‑term supply‑chain constraints. finance.yahoo.com
- 2Lam’s shares fell as much as 9% in pre‑market trading after the guidance announcement. finance.yahoo.com
- 3Marvell Technology shares dropped 8% to $224.64 following Lam’s warning. 247wallst.com
- 4Advanced Micro Devices shares fell 8% to $509.79 after the same comment. 247wallst.com
- 5Intel shares declined 7% to $86.64 in response to Lam’s supply‑chain outlook. 247wallst.com
- 6The iShares Semiconductor ETF (SOXX) was down between 4% and 6% after the news. finance.yahoo.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.