| 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.'s customer base includes semiconductor memory, foundry, and integrated device manufacturers that make products such as non-volatile memory, dynamic random-access memory, and logic devices. Co.'s services include customer service, spares, improvement, and refurbishment of its deposition, etch, and clean products. Co. sells its products and services to companies in the U.S., China, Europe, Japan, Korea, Southeast Asia, and Taiwan. |
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).