KLA and Lam Research Tumble Along With ASML as Analysts Worry About China Sales

Shares of semiconductor equipment makers KLA (KLAC), Applied Materials (AMAT), and Lam Research (LRCX) posted the steepest losses in the S&P 500 on Tuesday as analysts raised concerns about near-term demand from China.

The stocks also came under pressure as ASML (ASML) provided a weak forecast and following reports the U.S. is considering export restrictions to certain countries.

Raymond James Lowers Price Targets

Raymond James analysts lowered their price targets for all three stocks, as well as ASML (ASML), and said they anticipate a slowdown in demand from the world’s second-largest economy for dynamic random access memory (DRAM)—a key data-storage component used in computers.

Lam and Applied Materials shares fell over 10% Tuesday, while KLA shares ended the session close to 15% lower. ASML shares fell more than 16%.

ASML Sales Warning, Possible Export Caps Weigh on Chip Stocks

The losses came as ASML also accidentally released its quarterly results a day earlier than expected, reporting lower-than-expected net bookings for the period and issuing a lackluster sales outlook for 2025.

Meanwhile, a report that the Biden administration is considering a cap on exports to certain nations due to national security concerns added to downward pressure on semiconductor stocks broadly.

The PHLX Semiconductor Index (SOX), a closely watched gauge of the chip industry’s performance, dropped more than 5% on Tuesday.