LRCX - With the Semiconductor Downturn Nearing Its End Is Dividend Stock Lam Research a Buy Now?
2023-04-14 06:10:00 ET
If you were to review current headlines, you might conclude the semiconductor industry is in total disarray. With PC and smartphone sales still down in the dumps (at least when compared to blistering sales levels in 2020 and 2021), there's at least a quarter or two of pain left before the chip industry returns to growth again.
However, when looking at stock prices, the chip downturn would appear to be over. Case in point, shares of chip fab equipment company Lam Research (NASDAQ: LRCX) are up nearly 70% from multi-year lows they hit in autumn 2022. What gives? And is it too late to buy this top dividend stock?
Lam Research is a chip fab equipment manufacturer. It makes the machines that chip fabs (companies that operate chip manufacturing facilities) use to make wafers (the silicon disks that eventually get cut up into "chips"). Lam competes with the likes of Applied Materials and Tokyo Electron , with machines that deposit chemicals onto, etch tiny patterns into, and fill patterns and holes with conductive metals in those wafers.
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With the Semiconductor Downturn Nearing Its End, Is Dividend Stock Lam Research a Buy Now?