LRCX - Why Lam Research Stock Popped This Week
2023-07-28 16:57:07 ET
Artificial intelligence (AI) investments are driving demand for advanced semiconductor manufacturing equipment. Leading equipment maker Lam Research (NASDAQ: LRCX) popped as much as 16.1% this week, according to data provided by S&P Global Market Intelligence , after putting up a revenue forecast that beat Wall Street estimates.
Shares of Lam Research are now up 74% this year and are back above all-time highs set during the pandemic bull market.
If you just looked at Lam Research's current earnings, you wouldn't get that excited. Revenue for the equipment maker declined 25% from a year ago to $3.2 billion in the second quarter. This is a prime example of the cyclicality of the semiconductor equipment industry. Operating margin came in strong at 26.6%, compared to 24% in the prior quarter, but that is still well below the 32% operating margin in the year-ago quarter.
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Why Lam Research Stock Popped This Week