Shares of Lam Research climbed sharply on Friday, closing 8.3% higher at $231.01. The stock showed minimal movement in after-hours trading, settling near its closing price.
Semiconductor Sector Gains Momentum
The advance was part of a wider rally across the semiconductor industry. The PHLX Semiconductor Index jumped 5.7%, driven by gains in major players like Nvidia, AMD, and Broadcom. Equipment peers Applied Materials and KLA also posted significant increases of roughly 6.1% and 8.4%, respectively.
Analysts point to sustained demand for artificial intelligence products as a key driver, even amid recent market volatility. The sector received a further boost from a Semiconductor Industry Association forecast, which projects global chip sales will reach $1 trillion this year, up from $791.7 billion in 2025.
Corporate Developments and Market Context
Lam Research announced a quarterly dividend of $0.26 per share, payable on April 8 to shareholders of record on March 4. In a separate filing, Senior Vice President Seshasayee Varadarajan exercised equity awards for 53,925 shares on February 3.
The company recently provided financial guidance, anticipating revenue of approximately $5.7 billion for the current quarter, plus or minus $300 million. It expects adjusted earnings per share of $1.35, with a potential swing of 10 cents in either direction.
Market attention now turns to upcoming economic indicators. The January U.S. jobs report is scheduled for release on February 11, followed by Consumer Price Index (CPI) data on February 13. These figures could significantly influence interest rate expectations and market sentiment toward technology stocks.
