TSM - Here's Why Lam Research Stock Dropped 10% Last Month
2023-10-09 11:06:55 ET
Lam Research 's (NASDAQ: LRCX) stock price dropped by 10.5% in September, according to S&P Global Market Intelligence . The semiconductor sector's rally cooled off last month, with investors focusing on news that indicates demand for chips is weakening. As an important supplier to chip makers, Lam Research was a victim of those broader trends.
Lam Research manufactures and services equipment that's used in semiconductor fabrication. Its customers include some of the world's highest-profile chipmakers, including Taiwan Semiconductor Manufacturing (NYSE: TSM) and Intel (NASDAQ: INTC) . As a result, Lam Research's stock tends to rise and fall with the sector, even if there's no notable news about the company itself.
September was an active month for semiconductor stocks. Taiwan Semiconductor, the world's largest contract chip foundry, reported that its sales were down 13% year over year in August despite hitting the highest level since January. In addition, in mid-September, it was reported that Taiwan Semiconductor had asked its suppliers to temporarily delay delivering some orders of high-end chipmaking equipment. That suggested weaker-than-expected demand in the chip market, and it created jitters among investors about the industry's near-term prospects. Those fears appeared to be confirmed at least partially at Intel's September investor event, during which the CFO spoke about some short-term challenges . Investors weren't pleased with those comments, driving shares lower.
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Here's Why Lam Research Stock Dropped 10% Last Month