The semiconductor sector is trading sharply lower after Lam Research (LRCX) provided a disappointing forecast. Despite beating Q1 earnings and revenue estimates, the company's stock is down over 8% in pre-market trading. Investors are concerned about supply chain constraints that are capping forward guidance and an expected significant decline in revenue from China. This news is exacerbating recent selling pressure on the chip sector, which has been affected by macroeconomic concerns and profit-taking in high-valuation tech stocks.