By Radarr Africa Business Desk
LAGOS, November 9 (Radarr Africa) – Lam Research Corporation, the US chip-equipment maker, said its board approved a new share repurchase authorisation of $25 billion, adding to the balance left under its previous programme, as semiconductor stocks sought to recover from a sharp sell-off.
The company announced the buyback on November 5 from Fremont, California. The programme has no end date, can be paused or stopped at any time, and does not oblige the company to buy any specific amount of stock. The board also declared a quarterly dividend of $0.33 per share, payable on January 6, 2027, to shareholders of record on December 2, 2026.
Chief financial officer Doug Bettinger said the authorisation “reinforces our capital allocation plan.” He also pointed to strong market positioning and robust cash generation as reasons for confidence in meeting the company’s capital return goals.
Lam shares rose more than 11 per cent in premarket trading on Friday, according to Schwab market data. The move came a day after the S&P 500 recorded its worst daily loss since April 2025, led by technology stocks.
On Thursday, information technology fell 7.3 per cent and all 11 sectors of the S&P 500 finished lower. Semiconductors are down 30 per cent from recent peaks, including a 12 per cent drop on Thursday, and the Nasdaq-100 stood 15 per cent below its October high, Schwab said.
Nvidia fell 9 per cent on Thursday and rose 4 to 5 per cent early on Friday. AMD, which fell 17 per cent on Thursday, rose almost 8 per cent ahead of the open.
Liz Ann Sonders, chief investment strategist at the Schwab Center for Financial Research, said: “Tech was the only sector to underperform the S&P 500.”
Schwab noted that over the past 52 Nasdaq corrections of 10 per cent or more, the index regained its previous high within three months 38 per cent of the time and within six months 60 per cent of the time.
A buyback reduces the number of shares in issue, which can lift earnings per share and signals that a company’s board sees its stock as good value. Because the authorisation is open-ended, Lam can time purchases to market conditions.
