Chip Equipment Stocks Rise on Future Spending Outlook
Lam Research (NASDAQ:LRCX) rose 5%, while Applied Materials (NASDAQ:AMAT) and KLA Corporation (NASDAQ:KLAC) gained 4% and 3%, respectively, in a narrow rally among chip equipment stocks. The gains were driven by expectations of future capital spending rather than current demand for semiconductors. The iShares Semiconductor ETF (SOXX) rose just 0.9%, while the SPDR S&P 500 ETF Trust (SPY) fell slightly, indicating that Friday's buying was concentrated in equipment makers and not a broad market or sector-wide move. Lam Research’s stock has gained 66% year-to-date but dropped 13% over the past month. The rally reflects how chip equipment stocks often trade based on long-term capital plans rather than immediate demand for finished chips, allowing these names to outperform during sessions when broader semiconductor and market indices remain flat or decline.
Topics: chip equipment stocks semiconductors stock price movement