LRCX - 1 Chip Stock Secretly Playing A Massive Role In AI Development
2024-05-06 15:30:00 ET
Lam Research (NASDAQ: LRCX) has been on a tear since the start of 2023, more than doubling in value in that span of time and setting fresh all-time-highs. And all of this comes in the middle of a downturn for Lam's segment of the semiconductor market. What gives?
Lam, along with its chip manufacturing equipment peers like ASML Holding and Applied Materials , is benefiting from nations across the globe funneling incentives toward domestic semiconductor production. In addition to this, artificial intelligence (AI) systems like those from Nvidia are putting heftier performance demands on chips. Lam is a key provider of the advanced equipment needed to make these AI systems.
Investors have begun to catch on to the opportunity and have thus driven Lam stock higher. But as an under-followed AI development company, Lam could still have a lot to gain in the coming years. Here's why.
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1 Chip Stock Secretly Playing A Massive Role In AI Development