Why it matters
- The PHLX Semiconductor index rose 4.21% to 9,390.25 on Friday, Nov. 6, a day after a 12.25% plunge, Yahoo Finance data show. It still fell 12.15% for the week.
- Lam Research rose 8.2% to $200.44 after its board approved a $25 billion share repurchase authorization and a 33-cent quarterly dividend, the company said in a Nov. 5 release.
- AMD gained 11.0% and Micron 5.1%, Yahoo data show. CNBC said dip-buyers returned to chip stocks, while Microchip Technology fell 14% on weak guidance.
Chip stocks bounced on Friday, Nov. 6, after Thursday's 12.25% plunge. The PHLX Semiconductor index rose 4.21% to 9,390.25, according to Yahoo Finance data, and Lam Research jumped 8.2% to $200.44 after announcing a $25 billion stock buyback. The Nasdaq Composite rose 1.09% to 24,579.42, CNBC reported.
The rebound recovered only part of the week's losses. The semiconductor index fell 12.15% from its Oct. 30 close of 10,688.80, and the Nasdaq lost 3.37% for the week, Yahoo data show.
What did Lam Research announce?
Lam's board approved a $25 billion share repurchase authorization and a quarterly dividend of 33 cents a share, the chip equipment maker said in a Nov. 5 release filed with the Securities and Exchange Commission. The new authorization adds to what remains under its prior program.
The program has no termination date and does not oblige Lam to buy any shares, the company said. Repurchases may be made in the open market or in private deals, including structured repurchase agreements. The dividend will be paid on Jan. 6, 2027, to holders of record on Dec. 2.
"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," Chief Financial Officer Doug Bettinger said in the release.
Lam shares surged nearly 11% before the open, CNBC said. Even after Friday's gain, the stock fell 16.2% for the week, from $239.11 on Oct. 30, according to Yahoo data.
Why are chip stocks up today?
Investors bought after Thursday's sell-off. Dip-buyers returned to chip stocks Friday, CNBC reported, after fears that Democratic election wins could slow data center construction hit AI-linked names hardest.
Bank of America analyst Wamsi Mohan said, "The recent sell-off in AI-exposed IT hardware has come from lower valuation multiples, not lower earnings estimates," according to CNBC. A stronger-than-expected October jobs report also helped sentiment, CNBC said. Read our October jobs report story.
| Stock | Thu., Nov. 5 | Fri., Nov. 6 | Week (vs Oct. 30) |
|---|---|---|---|
| PHLX Semiconductor index | -12.25% | +4.21% | -12.15% |
| Lam Research | -16.4% | +8.2% | -16.2% |
| AMD | -17.3% | +11.0% | -11.0% |
| Micron | -17.5% | +5.1% | -22.0% |
| Nvidia | -9.3% | +2.8% | -8.8% |
| Broadcom | -10.4% | +0.7% | -9.9% |
Source: Yahoo Finance daily closes.
Is the chip sell-off over?
Not everyone thinks so. "I don't think we're at the bottom, but I think you can see it from here," Chris Grisanti, chief market strategist at MAI Capital Management, told CNBC. CNBC said reports that Microsoft plans to cut back on some cloud computing partners tempered the rally, and Microchip Technology fell 14% after weak third-quarter guidance.
For Thursday's rout, see our report on the Nasdaq's 5.5% plunge into correction, and follow more company news.
Sources
- Lam Research, Lam Research announces $25 billion share repurchase authorization and quarterly dividend, Exhibit 99.1 to Form 8-K (Nov. 5, 2026)
- CNBC, Nasdaq rebounds 1% following worst session in 18 months as traders snap up tech shares: Live updates (Nov. 6, 2026)
- Yahoo Finance, chart data: PHLX Semiconductor, Nasdaq Composite, Lam Research, AMD, Micron, Nvidia, Broadcom
