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Texas Instruments, Lam Research Stocks Face 6.6%, 7.4% Swings on Earnings
What is the options market expecting from Texas Instruments and Lam Research earnings?
Options markets price Texas Instruments (TXN) and Lam Research (LRCX) stocks to move about 6.6% and 7.4% after Wednesday's earnings, as investors test whether AI chip-equipment demand is still growing after October's selloff.
Key numbers
| Texas Instruments implied move | 6.6%options-implied, post-earnings (per [4]) |
|---|---|
| Lam Research implied move | 7.4%options-implied, post-earnings (per [4]) |
| Lam expected revenue | $8.1B+52.8% YoY expected |
| Texas Instruments expected revenue | $5.9B+24.6% YoY expected |
| Lam shares last week | $263.45-12.1% in a week; +59.0% YTD |
What happened
Options markets price Texas Instruments (TXN) and Lam Research (LRCX) stocks to move about 6.6% and 7.4% after Wednesday's earnings, as investors test whether AI chip-equipment demand is still growing after October's selloff. Texas Instruments, which makes everyday electronic parts (analog chips), is expected to report sales of about $5.9 billion, up roughly 25% from a year ago. Lam Research, which makes machines used to build chips, is expected to report about $8.1 billion, up roughly 53%. Chip stocks fell about 12% in October as the AI rally wobbled.
Why it matters
Lam Research's report shows whether the money chipmakers spend on AI factory equipment is still growing. Its shares fell 12.1% last week yet are still up 59% this year, so a weak outlook could hurt. Texas Instruments, which sells chips used in cars and factories, will show whether demand outside AI is recovering. Large options-implied moves mean both stocks could swing sharply in either direction.
Who this affects
- MarketmixedHigh impact
- Chip investors face sharp swings either way after the reports.
- CompanymixedHigh impact
- Both shareholders face big moves; a strong outlook would help.
- CompetitorsmixedMedium impact
- Applied Materials and KLA often follow Lam's result.
- IndustryneutralMedium impact
- Results will show if AI equipment spending is still rising.
Texas Instruments vs Lam Research, Applied Materials, KLA
How we got here
Lam reports record $6.72B June-quarter revenue and guides $8.1B for September quarter.
Equipment stocks slide; Applied Materials falls 7%, Lam and KLA about 4%.
S&P 500 posts biggest weekly drop since June; chip index down about 12% in October.
Texas Instruments and Lam Research report results after the market close.
What to watch
- Texas Instruments fourth-quarter outlook showing industrial and car chip demand still climbing2026-10-21
- Lam revenue near $8.1B guidance, plus detail on 2027 equipment spending2026-10-21
- Share moves versus the 6.6% and 7.4% options-implied swings at Thursday's open (per)2026-10-22
Educational content only. Not investment advice.
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