--- title: "Lam Research said parts capped its guidance; Ichor's November 2 report tests the squeeze" description: "Lam Research just posted a record quarter and still warned that parts shortages capped its December guidance. On November 2 Ichor reports, and its valves and cables are the narrowest point of that same squeeze." publisher: "The Inference" section: "Chips" published: 2026-10-25T16:13:20.048Z modified: 2026-10-25T16:13:20.048Z canonical: https://theinference.org/article/lam-research-said-parts-capped-its-guidance-ichor-s-november-2-report-tests-the-squeeze language: en keywords: "Lam Research, Ichor Holdings, Semiconductor Equipment, Supply Chain, Earnings" --- # Lam Research said parts capped its guidance; Ichor's November 2 report tests the squeeze > Lam Research just posted a record quarter and still warned that parts shortages capped its December guidance. On November 2 Ichor reports, and its valves and cables are the narrowest point of that same squeeze. The valves and cables are the bottleneck. On October 21 [Lam Research](https://theinference.org/markets/companies/lam-research), the largest maker of etch and deposition tools, posted [record September-quarter revenue of $8.22 billion and non-GAAP earnings of $2.20 a share](https://247wallst.com/investing/2026/10/22/lam-research-sinks-9-as-supply-constraints-cap-outlook-applied-materials-drops-6-asml-holding-falls-4/), and the stock still fell 9% to $236.83 [3]. The reason sat in one sentence from CFO Doug Bettinger: the December-quarter guide of $8.6 billion, plus or minus $400 million, would have been a bit higher if not for some near-term supply chain constraints [3]. Demand is not the problem. Parts are. ## The small company holding the same bag Two days later the market gets the small-company version of that sentence. [Ichor Holdings](https://theinference.org/markets/companies/ichor-systems), the Fremont, California maker of gas and chemical delivery subsystems welded into the wafer-fab tools of customers like Lam, [reports its September quarter on November 2, 2026](https://www.stocktitan.net/news/ICHR/) [1][2]. It guided revenue of $315 million to $345 million and non-GAAP earnings of $0.40 to $0.50 a share, against a consensus near $0.45 [1][2]. *Chart: **Revenue climbs every quarter, yet June still missed on part shortages** Column chart of Ichor Holdings quarterly revenue rising from $223.6M in the December 2025 quarter to $294.8M in the June 2026 quarter, with the September 2026 quarter guided at $315 to $345 million, midpoint $330M drawn as an estimate.* *Revenue climbs every quarter, yet June still missed on part shortages [1][2]* The June quarter showed what a parts wall does. Ichor grew revenue 24% year over year to $294.8 million, yet still missed consensus by 1.85%, because isolated part shortages kept it from recognizing its full forecast before quarter end [2]. The shipments landed days later, past $300 million for the 13 weeks ended July 3 [2]. On October 14 Oppenheimer [warned the supply of components, from cables to valves, remains uneven](https://dailydigestinvest.com/ichor-s-margin-push-faces-supply-snags-oppenheimer-warns) and the hiccup could linger [5]. B. Riley [cut its target to $85 from $105](https://www.ad-hoc-news.de/boerse/news/nebenwerte/b-riley-cuts-target-to-usd-85-for-ichor-holdings-stock/70378376) on October 19, keeping its Buy rating [6]. ## Underwater since August October has compounded the squeeze. On October 13 [investors took profits across the equipment group](https://247wallst.com/investing/2026/10/13/semiconductor-equipment-stocks-slide-as-investors-take-profits-on-a-huge-year-applied-materials-sinks-7-lam-research-and-kla-drop-4/): [Applied Materials](https://theinference.org/markets/companies/applied-materials) fell 7%, Lam and [KLA](https://theinference.org/markets/companies/kla) 4%, against a 1% drop for the semiconductor ETF [4]. Ichor's slide has been worse. The stock closed at $37.94, 67% below its 52-week high of $113.58 [1], and every buyer of the 2.5 million shares Ichor sold at an average $80.70 in its June-quarter offering is underwater [2]. Insiders sold $13.0 million and bought $0.3 million over the past year [7][8]. ## The shortage is the bull case The counterpoint is the strongest one in the record. Lam's chief executive Tim Archer called the tightness nothing like the COVID-era shortage and said the company will be caught up shortly, while the industry floats more than $200 billion of 2027 equipment spending [3]. A shortage inside a demand boom caps shipments today and hands pricing power to whoever can ship tomorrow. The November 2 report tells which side of that trade the valves and cables land on [3]. ## Takeaway Lam Research's record quarter came with a December guide capped by parts shortages, and Ichor, the valve and cable supplier welded into Lam's tools, reports the same squeeze from the inside on November 2. ## Sources 1. [StockTitan, Ichor Holdings (ICHR) Stock News & Updates, accessed 25 October 2026](https://www.stocktitan.net/news/ICHR/) 2. [Zacks via Yahoo Finance, Why Is Ichor Holdings (ICHR) Down 27.4% Since Last Earnings Report?, 2 September 2026](https://finance.yahoo.com/markets/stocks/articles/why-ichor-holdings-ichr-down-153006044.html) 3. [24/7 Wall St., Lam Research Sinks 9% as Supply Constraints Cap Outlook, 22 October 2026](https://247wallst.com/investing/2026/10/22/lam-research-sinks-9-as-supply-constraints-cap-outlook-applied-materials-drops-6-asml-holding-falls-4/) 4. [24/7 Wall St., Semiconductor Equipment Stocks Slide as Investors Take Profits on a Huge Year, 13 October 2026](https://247wallst.com/investing/2026/10/13/semiconductor-equipment-stocks-slide-as-investors-take-profits-on-a-huge-year-applied-materials-sinks-7-lam-research-and-kla-drop-4/) 5. [Daily Digest Invest, Ichor's margin push faces supply snags, Oppenheimer warns, 15 October 2026](https://dailydigestinvest.com/ichor-s-margin-push-faces-supply-snags-oppenheimer-warns) 6. [AD HOC News, B. Riley cuts target to USD 85 for Ichor Holdings stock, 22 October 2026](https://www.ad-hoc-news.de/boerse/news/nebenwerte/b-riley-cuts-target-to-usd-85-for-ichor-holdings-stock/70378376) 7. [GuruFocus, Is Ichor Holdings Ltd (ICHR) Overvalued After 4.3% Rally?, 19 October 2026](https://www.guru-focus.com/news/9130680/) 8. [GuruFocus, A Look at Ichor Holdings Ltd (ICHR) After 9.2% Decline, 12 October 2026](https://www.guru-focus.com/news/9120153/) --- Lam Research said parts capped its guidance; Ichor's November 2 report tests the squeeze — The Inference. Canonical: https://theinference.org/article/lam-research-said-parts-capped-its-guidance-ichor-s-november-2-report-tests-the-squeeze