Lam Research Corp. (NASDAQ:LRCX) stock fell about 5% Friday as NVIDIA Corp. (NASDAQ:NVDA) CEO Jensen Huang’s abrupt departure weighed on semiconductor and AI infrastructure stocks.
The selloff also hit semiconductor equipment peers Applied Materials Inc. (NASDAQ:AMAT) and KLA Corp. (NASDAQ:KLAC).
The Nasdaq declined 2.11%, while the S&P 500 lost 1.02%. 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 selling pressure.
Lam Research fell more sharply than the broader technology sector. Meanwhile, defensive sectors held up better, with Consumer Staples gaining 1.16%.
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.
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.
However, 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 Benzinga Edge rankings show strong Quality and Growth scores of 96.85 and 96.67, respectively. However, its Value score stands at just 8.87.
LRCX Stock Price Action
Lam Research shares were down 5.04% at $221.99 at the time of publication Friday, according to Benzinga Pro data.
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