Why Lam Research Rose 11.1% in July
Semiconductor equipment market Lam Research (NASDAQ: LRCX) saw its stock rise 11.1% in July, according to S&P Global Market Intelligence. Shares surged on renewed optimism that the semiconductor cycle may be turning for the better, especially the environment for NAND flash memory. Lam Research capped off the month with a mixed second-quarter earnings report that beat analysts' earnings expectations, yet missed on revenue.
NAND flash is nonvolatile memory, which has been in a severe downturn for the past year and a half. Lam Research makes the equipment that allows flash companies to execute the difficult process of stacking NAND memory modules. Therefore, when the NAND flash market falls into a slump, so do the prospects for Lam Research. Last quarter, Lam got 46% of its revenue from NAND flash customers and 18% from DRAM memory, along with 23% from foundries and 11% from logic.
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