Lam Research is a supplier of wafer fabrication equipment and services to the semiconductor industry. Co. designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. Co. also addresses processes for back-end wafer-level packaging, which is an alternative to wire bonding. In addition, Co. provides packaging solutions that support fan-out panel-level packaging. Co. provides a range of services throughout the lifecycle of its equipment, including customer service, spares, improvement, and refurbished non-leading edge products in its deposition, etch, and clean markets.
When researching a stock like Lam Research, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from LRCX Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for LRCX stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the LRCX 200 day moving average ("LRCX 200 DMA"), while one of the most popular "shorter look-backs" is the LRCX 50 day moving average ("LRCX 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Lam Research. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the LRCX 200 DMA and the LRCX 50 DMA, we get a moving average convergence divergence indicator ("LRCX MACD"). The LRCX MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis