Why is Lam Research stock surging today?
Investing.com ·
Why is Lam Research stock surging today?
Investing.com -- Lam Research stock surged 10.8% in morning trading on Friday, bouncing sharply after the semiconductor equipment maker’s board announced a $25 billion share repurchase authorization and a quarterly cash dividend of $0.33 per share — a move that immediately reversed the prior session’s steep losses and signaled that management views the stock as deeply undervalued at current levels.
On the analyst front, LYNX Equity Strategies described the buyback as a confidence signal and argued that underlying demand conditions in Asian memory and flash markets remain more resilient than the stock-market reaction implies, suggesting investors begin accumulating the stock gradually. Several major Wall Street firms — including Needham, Mizuho, and Morgan Stanley — maintained constructive ratings on Lam Research, even as they trimmed price targets, keeping the overall analyst consensus firmly in bullish territory with 26 Buy ratings among covering analysts.
The broader market backdrop added fuel to the rebound. Thursday had been catastrophic for the chip sector — the Philadelphia Semiconductor Index plunged 12.25%, its worst single-day drop since March 2020, dragging Lam Research and peers sharply lower on concerns about the political outlook for data-center construction following the midterm elections. Today, the NASDAQ is recovering +1.75%, aided by a much stronger-than-expected October jobs report showing 165,000 nonfarm payrolls added versus a consensus of roughly 59,000–65,000, which helped stabilize risk appetite across technology stocks.
Read the full story at Investing.com · All coverage of this story