Lam Research Approves $25 Billion Share Repurchase Authorization
Key Facts
Lam Research’s board approved an authorization on November 5, 2026, to repurchase up to $25 billion of shares and declared a quarterly dividend of $0.33 per share, according to the company. The decision came during a broad selloff in technology and semiconductor stocks, with the semiconductor sector index falling as much as 11% in the session and the Nasdaq dropping as much as 5%, according to a Reuters report carried by MarketScreener. Chief Financial Officer Doug Bettinger said the company’s position at technology inflections and its cash generation support its confidence in achieving its capital return objectives. He added: "Our strong positioning at key technology inflections and robust cash generation give us confidence in our ability to deliver on our capital return objectives over time." The authorization sets a ceiling for potential purchases, but does not mean the company will actually buy shares for that amount.
Shares of companies involved in building AI data centers had come under pressure in the week before the announcement, amid concerns that Democratic gains in state elections could constrain the expansion of those centers, according to an Associated Press report. The report also linked those concerns to higher borrowing costs. In the November 5 session, Lam Research shares fell 16.4%, while the semiconductor index dropped 12.25%, its steepest one-day decline since March 2020, according to Investing.com. Those figures relate to Thursday’s session, while the broader selloff had fueled volatility in sector shares. The authorization has no expiration date, can be suspended or terminated by the company at any time, and does not require it to buy any shares.
Lam Research shares rebounded on November 6, after the authorization was announced, rising about 11% in premarket trading to $205.65, according to Investing.com. The Associated Press reported that the stock gained 8.2% during the session, as AI shares rebounded from losses over the previous two days. EL7 data showed the stock closed at $200.44 that day. The moves show the difference between the premarket price and the stock’s performance at the close, and relate to the November 6 session, not the day the authorization was announced. In the Wednesday, November 11 session, the Nasdaq rose 1.6%, supported by technology shares, according to the Associated Press.
The capital return decision is underpinned by strong operating performance in the September quarter. Lam Research reported revenue of $8.22 billion for the quarter ended September 27, 2026, up 22% from the June quarter, according to the company’s results. Chief Executive Tim Archer said higher semiconductor demand and device complexity tied to AI helped the company post record revenue, earnings and earnings per share during the quarter. Cash, restricted cash and cash equivalents totaled $7.45 billion at the end of the September quarter, compared with $5.60 billion at the end of the June quarter. The company forecast revenue of $8.60 billion for the quarter ending December 27, with a margin of $400 million higher or lower. Archer said: "As AI drives semiconductor demand to higher levels and increases device complexity, Lam’s focus on operational execution helped deliver record revenue, earnings and earnings per share in the September quarter."
The record revenue figure of $9.12 billion and annual growth of 25% relate to Applied Materials in the third quarter of its 2026 fiscal year, not Lam Research. Applied reported revenue of $9.115 billion, compared with $7.302 billion in the same period a year earlier, according to its results statement. The company forecast fourth-quarter revenue of $10.25 billion, with a margin of $500 million higher or lower. Applied said clear customer demand supports its expectation of another strong year of growth in 2027, noting that global AI adoption is driving unprecedented demand for materials engineering solutions. The company is scheduled to hold its fourth-quarter and fiscal 2026 results call on November 12 at 4:30 p.m. Eastern Time; its announcement did not specify when results would be released.
Lam’s $0.33-per-share dividend is scheduled to be paid on January 6, 2027, to shareholders of record on December 2, 2026, according to the company. This places the dividend payment after the record date set for eligible shareholders. In the near term, sector attention is focused on Applied Materials’ November 12 call and Lam’s December-quarter revenue estimate of $8.60 billion, with a margin of $400 million. These dates follow sharp volatility in technology shares, amid concerns about the cost of financing data centers and the potential for construction to slow. The Associated Press also reported that U.S. inflation data that came in worse than expected raised market expectations for future Federal Reserve rate increases.