Lam Research shares jumped on Friday after the semiconductor equipment maker announced a $25 billion share buyback and a quarterly dividend, a vote of confidence a day after chip stocks sold off heavily.

The shares were up about 10% at $204.12 by midday on Friday, Morningstar reported, citing Dow Jones market data. The stock has gained 19% this year.

Lam's board approved the $25 billion repurchase authorisation on Thursday. The new authorisation adds to whatever remains under the company's earlier buyback programme, has no termination date, and can be suspended or discontinued at any time. The company did not disclose how much remained under the earlier authorisation.

Lam also declared a quarterly dividend of $0.33 a share, payable on 6 January 2027 to shareholders of record on 2 December 2026. Future dividends remain subject to board approval.

A signal after a bruising week

Chief Financial Officer Doug Bettinger said the authorisation "reinforces our capital allocation plan and commitment to return significant value to stockholders through dividends and share repurchases". He added that Lam's positioning at key technology inflections and robust cash generation gave the company confidence in its ability to deliver on its capital-return objectives over time.

The announcement came as chip stocks rebounded on Friday after a steep sell-off on Thursday, when investors sold semiconductor shares after the midterm elections. Lam makes wafer fabrication equipment used to manufacture integrated circuits, and its shares had been struggling to regain momentum before the buyback announcement, despite the year's gains.

The buyback is an authorisation, not a spending commitment: Lam is not obliged to repurchase any shares, and how much it ultimately spends will depend on market conditions and later disclosures.