The global supply of semiconductors is not keeping pace with demand. The past year has proven to be extremely volatile, with the first half seeing booming growth while the other half has seen a slowdown. Shares of Lam Research Corporation (NASDAQ: LRCX), a U.S. wafer manufacturing supplier, have remained volatile over the past year. LRCX stock price closed at $608.76 on Friday, down 1.79% from the previous close.
Lam Research’s revenue has grown over the years
The company has 17,700 employees with a market cap of $81.781 billion. The price/earnings ratio has remained below 20 for some time, a good sign of profitability. Revenues appear to be growing, with Lam Research earning 45.66% between 2020 and 2021, and an additional 17.48% over the 2021-2022 period. The organization has generated $18.84 billion in the last twelve months.
According to a recent press release, Lam Research introduced the industry’s first beveled deposit, Coronus DX. The latest product is designed to prevent wafer edge damage that can occur in advanced semiconductor manufacturing. Lam Research’s Global Commodity Group Vice President Sesha Varadarajan believes this will help produce significantly higher returns.
Lam Research announced Semiverse Solutions, a suite of IT products to improve workforce productivity, on June 22, 2023, according to a company blog. The initiative can significantly reduce operating costs while significantly reducing the time spent on physical experimentation.
LRCX Share Price Performance
The chart shows that the value of LRCX shares halved in January and October 2022. However, the shares successfully recovered, with the price rising more than 100% between October 2022 and June 2023. An elliott wave puts highlight a short correction between November and December 2022 and a long correction between January and May 2023.
The TRIX indicator has started to decline, however, still well above the zero line, which shows that the price can move forward positively. The upward trend in the wedge highlights a breakout in LRCX stock price that occurred in May. Additionally, a bullish pennant supports potential gain in the coming days.
The True Strength Indicator (TSI) has crossed the signal line, a negative indication for LRCX stock, while the Average True Range (ATR) is at 17.08 points, indicating lower volatility. Currently, the price is holding support near $590 and resistance around $645.
The artificial intelligence (AI) boom is forcing several tech companies to embrace technology to increase efficiency and production. Tech giants developing AI will generate higher demand for semiconductors, as new advancements will require higher displacement power.
Other semiconductor stocks also fell during the week, with Intel Corporation (NASDAQ:INTC) dropping almost 10%, Nvidia (NASDAQ:NVDA) 4% and Advanced micro-systems (NASDAQ: AMD) by 11%.
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