Sometimes a stock falls because of something the company did. Sometimes it falls because of something someone else did. Friday was the second kind for Lam Research Corp. (LRCX), which slid about 5% as NVIDIA Corp. (NVDA) CEO Jensen Huang's abrupt departure sent a shiver through semiconductor and AI infrastructure names.
The pain wasn't exclusive to Lam. Semiconductor equipment peers Applied Materials Inc. (AMAT) and KLA Corp. (KLAC) got hit too. The Nasdaq declined 2.11%, the S&P 500 lost 1.02%, and technology was the worst-performing sector, falling 3.13%.
Broader Tech Selloff Pressures Lam Research
Investors pulled back from technology stocks as concerns over NVIDIA's leadership added to the selling pressure. Lam Research fell more sharply than the broader technology sector. Meanwhile, defensive sectors held up better, with Consumer Staples gaining 1.16%.
Zoom out and the picture isn't prettier: technology has declined 11.62% over the past 30 days and 11.57% over the past 90 days. Lam Research makes semiconductor manufacturing equipment used in advanced chip production, which means it sits squarely in the part of the market investors are currently least excited about.
Technical Indicators Signal Continued Weakness
Lam Research shares traded 5.5% below their 20-day simple moving average (SMA) and more than 20% below their 50-day SMA. The stock also remains under pressure following a death cross in November, when its 50-day moving average fell below its 200-day average.
There's one small silver lining: the moving average convergence divergence (MACD) indicator remains above its signal line, suggesting bearish momentum may be easing. Traders are watching resistance near $260.50 and support around $184.
Analyst Outlook
The stock carries a consensus Buy rating and an average analyst price forecast of $384.31. B. Riley Securities recently lowered its price forecast to $310, while UBS reduced its forecast to $400. Citigroup lowered its forecast to $435. All three maintained Buy ratings.
Lam Research's MarketDash Edge rankings show strong Quality and Growth scores of 96.85 and 96.67, respectively. However, its Value score stands at just 8.87. In other words, the business looks good, but you're paying up for it.
LRCX Stock Price Action
Lam Research shares were down 5.04% at $221.99 at the time of publication Friday, according to market data.
