Lam Research, Applied Materials, KLA stocks drop after Micron says it will cut capital expenditures


Shares of chip-equipment companies Lam Research Corp.
LRCX,
-10.01%,
Applied Materials Inc.
AMAT,
-8.31%
and KLA Corp.
KLAC,
-7.57%
are falling in Tuesday morning trading after Micron Technology Inc.
MU,
-5.21%
said it would cut capital expenditures for fiscal 2023 more than it had previously indicated. Lam shares are down 7.2%, while Applied Materials shares are off 6.5% and KLA shares are dropping 6.1%. Micron’s announcement came as the company warned that it could fall at or below the low end of its prior revenue forecast for the August quarter given a “challenging” backdrop in the memory market. “The company now expect F2023 total capex to be down ‘meaningfully’ (no quantification),” wrote Wells Fargo analyst Joe Quatrochi, who covers semiconductor-equipment companies. “While not a significant surprise post recent other memory results / negative semi pre-announcements, we’d view this as a negative.” Lam shares have gained 5.7% over the past three months, as Applied Materials shares have dropped 4.7% and as KLA shares have risen 14.2%. The S&P 500
SPX,
-0.43%
is up 3.3% over that span.



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Shares of chip-equipment companies Lam Research Corp.
LRCX,
-10.01%,
Applied Materials Inc.
AMAT,
-8.31%
and KLA Corp.
KLAC,
-7.57%
are falling in Tuesday morning trading after Micron Technology Inc.
MU,
-5.21%
said it would cut capital expenditures for fiscal 2023 more than it had previously indicated. Lam shares are down 7.2%, while Applied Materials shares are off 6.5% and KLA shares are dropping 6.1%. Micron’s announcement came as the company warned that it could fall at or below the low end of its prior revenue forecast for the August quarter given a “challenging” backdrop in the memory market. “The company now expect F2023 total capex to be down ‘meaningfully’ (no quantification),” wrote Wells Fargo analyst Joe Quatrochi, who covers semiconductor-equipment companies. “While not a significant surprise post recent other memory results / negative semi pre-announcements, we’d view this as a negative.” Lam shares have gained 5.7% over the past three months, as Applied Materials shares have dropped 4.7% and as KLA shares have risen 14.2%. The S&P 500
SPX,
-0.43%
is up 3.3% over that span.

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