Chip Stocks Lose $200 Billion as Equipment Maker's Warning Counters NVIDIA's AI Optimism

Chip stocks lost about $200 billion on Oct. 22 after Lam Research’s CFO warned that supply constraints capped its guidance, countering Nvidia CEO Jensen Huang’s message that AI demand was “off the charts” that morning in Berlin. Lam reported record fiscal first-quarter revenue of $8.22 billion, up 54% year over year, and issued December-quarter guidance of $8.6 billion. Still, CFO Doug Bettinger said results would have been higher without near-term supply chain constraints, with visibility problems extending into 2027 and delayed shipments moving into March. Lam shares slid 11.76%, dragging others: Arm (-7.28%), AMD (-8.10%), ASML (-6.93%), Intel and Marvell (each down more than 8%), Applied Materials (-8.2%) and KLA (at least -10%). The Philadelphia Semiconductor Index ended at 10,731.98, down 6.72%, its worst single-day drop since the summer.