Why Lam Research Stock Is Suddenly Under Pressure

Lam Research ( (LRCX) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.

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Lam Research shares came under pressure after Erste Group warned that supply-chain problems could hurt the chip-equipment maker’s profitability. The bank highlighted the company’s heavy dependence on helium to build its tools, saying any disruption could squeeze both gross and operating margins.

Reflecting those concerns, Erste cut its rating on Lam Research to Hold from Buy. The downgrade signals that the firm now sees more limited upside for the stock in the near term, given the added risk to earnings from these supply constraints.

More about Lam Research

YTD Price Performance: 29.85%

Average Trading Volume: 11,960,180

Technical Sentiment Signal: Buy

Current Market Cap: $277.2B

For further insights into LRCX stock on TipRanks’ Stock Analysis page.

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