By Dean Seal


Shares of Lam Research gained after the company approved a $10 billion buyback plan and said it would enact a 10-for-one stock split in the fall.

The stock was up 4.2% at $982 in premarket trading. Shares were trading at around $589 this time a year ago.

The chip-making equipment provider said Tuesday morning that its board has approved a new $10 billion share repurchase authorization that will supplement the remaining balances of prior authorizations.

The company has also set a 10-for-1 split of its common stock that will become effective after the market closes on Oct. 2.

The split is intended to help more of the company's employees participate in stock plans, while the buyback is part of Lam's strategy to return 75% or more of its free cash flow to shareholders, Chief Financial Officer Doug Bettinger said.


Write to Dean Seal at dean.seal@wsj.com


(END) Dow Jones Newswires

05-21-24 0906ET