Key Highlights

  • Electronic technology fell 8.25% over one month as of October 23, 2026, the third-weakest of 20 sector groups, but is still up 42.00% year to date.
  • Lam Research closed down 11.76% on October 22 after revenue rose 54% to $8.22 billion.
  • Western Digital reported fiscal first-quarter revenue of $4.381 billion, up 55%, and guided to $5.1 billion.
  • Lockheed Martin gained 12.63% over one month after a record backlog of $291.98 billion.

Electronic Technology: Why Did the Group Fall 8.25% After a 42.00% Run?

Electronic technology fell 8.25% over one month as of Friday, October 23, 2026, after losing 2.42% over one week and rising 0.50% on the day. It is down 2.44% over three months but up 12.85% over six months and 42.00% year to date.

The pullback is a reversal inside a very large gain. A month ago the group was up about 54.77% for the year, and it had gained about 6.33% in the two months before this one (both calculated). It trails technology services, down 2.69%, by 5.56 points and energy minerals, up 12.70%, by 20.95 points (calculated).

Chip Equipment: Why Did Lam Research, KLA and Applied Materials Fall After Record Results?

Lam Research (NASDAQ:LRCX) reported September-quarter revenue of $8.22 billion, up 54%, with adjusted EPS of $2.20 against $2.18 expected and a record gross margin of 52.4%. It closed down 11.76% at $230.15 on Thursday, October 22. KLA (NASDAQ:KLAC) closed down 9.55% and Applied Materials (NASDAQ:AMAT) closed down 8.16% the same day.

Lam guided December-quarter revenue to $8.6 billion, plus or minus $400 million, and cited 2027 wafer fab equipment demand above $200 billion, but said supply constraints may limit near-term shipments. Applied had fallen about 7% around October 13 at its investor day.

Smaller suppliers fell harder: Cohu (NASDAQ:COHU), Ichor (NASDAQ:ICHR) and Ultra Clean (NASDAQ:UCTT) each traded down about 15% on October 22 with no company announcement identified.

AI Spending and Rates: What Pressured Chips Earlier in October?

On October 8 the Philadelphia Semiconductor Index fell about 3.4% after a report that OpenAI's annualized revenue run rate was nearing $50 billion, about $20 billion below what the market assumed. On October 12 the chief executives of two large chipmakers pointed to capital access and financing costs as possible limits on AI buildout. The index fell for a fifth straight session on October 13, reaching a one-month low.

Rates added pressure. The Fed raised its target range to 3.75% to 4.00% on September 16, and the 10-year Treasury yield peaked at 5.31% on October 5 before easing to 4.96% on October 22.

Demand signals have not weakened. Western Digital (NASDAQ:WDC) reported fiscal first-quarter revenue of $4.381 billion, up 55%, with adjusted EPS of $4.64 against $4.10 expected, and guided the next quarter to $5.1 billion.

Against the Group: Which Electronic Technology Names Rose, and What Comes Next?

Lockheed Martin (NYSE:LMT) gained 12.63% over one month to $590.83 after reporting a record backlog of $291.98 billion on October 22 and raising 2026 EPS guidance to $30.35 to $30.75. Synaptics (NASDAQ:SYNA) gained 20.00% after a revised cash merger agreement with onsemi (NASDAQ:ON) at $123 per share on October 1. On the downside, indie Semiconductor (NASDAQ:INDI) fell 49.22% and Aehr Test Systems (NASDAQ:AEHR) fell 43.82%, including 16.81% in the past week.

Ultra Clean reports on October 27, Cohu on October 28 and Ichor on November 2, with Applied Materials on November 12. Investors will also watch the October 28 Fed meeting and megacap earnings for any change in tone on AI financing.