Lam Research and IBM Earnings Disappoint Investors, Triggering Market Selloff
What happened
Lam Research and IBM reported disappointing earnings releases on October 22, 2026, causing AI stocks to slide across the globe. In premarket trading, Lam Research fell 8.5% and IBM fell 5.4%. The earnings releases contributed to Nasdaq futures dropping 1.7%.
From morningstar.com
Why it matters
The poor reception to earnings from AI companies signaled that high expectations going into the quarter may be difficult to meet. The market reaction was compounded by a renewed selloff in French government bonds and a rise in Brent crude oil prices.
From morningstar.com
Who's involved
- Lam ResearchAmerican company whose earnings disappointed investors and is a competitor to IBM in the AI hardware market.
- IBMAmerican multinational technology corporation whose earnings disappointed investors and is a competitor to Lam Research in the AI hardware market.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Applied MaterialsSpeculative
Applied Materials might face pressure on its competitive market position due to sector-wide earnings disappointment.
- KLA CorporationSpeculative
KLA Corporation might face pressure on its competitive market position due to sector-wide earnings disappointment.
- Micron TechnologySpeculative
Micron Technology could see potential slowdown in chip demand or capital expenditure following global earnings disappointment.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Microsoft's AI spending may slow amid tech earnings slumpMicrosoft's AI infrastructure spending may slow amid tech earnings slumpPossible
- Lam Research's earnings may curb demand in the Korean marketLam Research's earnings disappointment may curb demand in the Korean marketPossible
- Earnings disappointment may pressure KLA Corporation's market positionSector-wide earnings disappointment may put pressure on KLA Corporation's market positionPossible
- Sector earnings disappointment may pressure Applied Materials' market positionSector earnings disappointment may pressure Applied Materials' market positionPossible
- Lam Research and IBM earnings disappointment may affect Bank of AmericaBank of America may adjust investment outlook following Lam Research and IBM earnings misses.Possible
See all 7 possible ripples
- Lam Research earnings slump may curb Nvidia's chip demandLam Research's earnings slump may signal reduced demand for Nvidia's AI chipsPossible
- Micron Technology may face pressure from slowing chip demandMicron Technology may face pressure from slowing chip demand following equipment sector earnings missesPossible
Keep exploring
The entities involved
-
Lam Research
American company
-
IBM
American multinational technology corporation