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Lam Research Corporation (NASDAQ:LRCX) stock rebounded in Friday's premarket trading after a sharp semiconductor selloff. The recovery followed the company's announcement Thursday of a $25 billion stock buyback authorization.
The chip equipment maker also declared a quarterly dividend of 33 cents per share.
Lam Research's board approved a new $25 billion stock buyback repurchase program. The authorization adds to the remaining balance under its previous buyback plan.
The company can repurchase shares through open-market purchases, private transactions and structured agreements.
The program has no expiration date. However, Lam Research can suspend or end repurchases at any time.
Lam Research declared a quarterly dividend of 33 cents per share, payable Jan. 6, 2027.
Shareholders of record as of Dec. 2, 2026, will receive the payment. Future dividends remain subject to board approval.
Chief Financial Officer Doug Bettinger said the buyback strengthens the company's commitment to returning cash to shareholders.
Bettinger also highlighted Lam Research's strong position in key technology transitions and its ability to generate cash.
The company expects those strengths to support its long-term capital return plans.
Lam Research recently reported first-quarter adjusted earnings of $2.20 per share, beating the analyst estimate of $2.18.
Revenue reached $8.22 billion, exceeding the consensus forecast of $8.15 billion.
For the second quarter, the company expects adjusted EPS of $2.18-$2.48, compared with the $2.31 analyst estimate. Revenue is projected at $8.2 billion-$9.0 billion, versus the $8.53 billion consensus.
Several analysts changed their price forecasts on Lam Research following the earnings announcement.
LRCX Stock Price Activity: Lam Research shares were up 11.45% at $206.31 during premarket trading on Friday, according to market data.
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