Key Highlights

  • Lam Research CDR (CAD Hedged) (CBOE:LRCX) fell 10.66% to CAD 20.44 in the October 22, 2026 midday session after the underlying Lam Research reported record revenue of USD 8.22 billion on October 21, 2026.
  • The underlying Lam Research reported September quarter earnings of USD 2.20 per share excluding items and a gross margin of 52.4%, and guided to December quarter revenue of USD 8.60 billion.
  • Shares in the US fell about 6.1% to USD 245 after hours on October 21 and about 9% before the October 22 open, the move that Lam Research CDR (CAD Hedged) (CBOE:LRCX) follows.
  • Lam raised its quarterly dividend to USD 0.33 from USD 0.26 and bought back about USD 1.02 billion of stock, but China, 35% of revenue, is set to fall, a risk for Lam Research CDR (CAD Hedged) (CBOE:LRCX).

What Happened on Results

Lam Research reported on October 21, 2026 revenue of USD 8.22 billion, up 22% from the June quarter, with diluted earnings of USD 2.19 on a GAAP basis and USD 2.20 excluding items, narrowly ahead of expectations. The stock had risen about 80% over the past year, so the beat was seen as priced in, and the guidance ranges, revenue of USD 8.20 billion to USD 9.00 billion and earnings of USD 2.18 to USD 2.48, were wide. The stock closed at USD 260.81 on October 21 and fell about 6.1% after hours, then about 9% before the October 22 open, leading chip equipment lower.

What a CDR Is and the Sector Backdrop

A Canadian depositary receipt, or CDR, listed on Cboe Canada, represents a fraction of the US-listed Lam Research share, with a hedge to reduce currency effects, so Lam Research CDR (CAD Hedged) (CBOE:LRCX) follows the underlying stock. Applied Materials and KLA fell about 6%, AMD, Intel and Sandisk 4% to 5%, and the iShares Semiconductor ETF about 4% before the open, after record weekly fund inflows. Lam said wafer fab equipment spending is expected in the mid-USD 150 billion range in 2026 and above USD 200 billion in 2027. Chip equipment makers had rallied on expectations that memory and foundry customers would raise capital spending, so the sector was positioned for good news. Lam also said customer visibility extends into 2028.

Risks and What to Watch

China was Lam's largest market at 35% of revenue, and local Chinese customer spending is expected to decline, although spending by multinationals in China should stay relatively solid. Equipment makers depend on memory and foundry capital spending, which can swing quickly. December quarter guidance implies operating margin near 40.5% and earnings of USD 2.33, plus or minus USD 0.15, so the next report will test the outlook. Nothing in this article is investment advice. Lam expects 2026 systems revenue to rise more than 40%, which supports the growth case, but a stock that has risen about 80% in a year needs results well ahead of expectations to rise. The stock remains about 40% below its June 30 high of USD 438.50.

Where Things Stand

The best-supported answer to the headline is a sell-the-news reaction to record but only narrowly better results, amplified by a chip-wide selloff. Lam Research CDR (CAD Hedged) (CBOE:LRCX) fell 10.66% to CAD 20.44 after the underlying stock dropped about 6.1% after hours and about 9% before the open on October 22, 2026. China exposure and wide guidance ranges are the main points of debate. The underlying business is growing, with a December quarter revenue guidance midpoint about 4.6% above September, simple arithmetic.