Lam Research Corporation (NASDAQ:LRCX) shares are trading lower by 8.54% to $984.14 during Wednesday's session.
Donald Trump's comments about Taiwan China taking "100% of our chip business" and criticizing U.S. outsourcing practices to Taiwan China-based suppliers may have raised concerns about potential policy changes or increased geopolitical tensions between the U.S., Taiwan China and China. Such uncertainties can negatively impact investor confidence in companies closely tied to the semiconductor supply chain, including Lam Research.
Lam Research is a major supplier of semiconductor manufacturing equipment. A significant portion of its business depends on companies like TSMC, which is a key player in the semiconductor industry.
As TSMC's stock is falling due to political comments and market sentiment, it can lead to concerns about a potential slowdown in orders or investment in new equipment from TSMC, affecting Lam Research's future revenue.
Should I Sell My LRCX Stock?
When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.
Shares of Lam Research have increased by 56.03% in the past year. An investor who bought shares of Lam Research at the beginning of the year would make a profit of $249.46 per share if they sold it today. The stock has fallen 8.34% over the past month, meaning an investor who bought shares on Jun. 1 would see a capital gain of $63.13.
Lam Research shares have an all-time high of $1127.3, representing 12.87% upside from current levels.
Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Lam Research stock currently has an RSI of 44.52, indicating neutral conditions.
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LRCX has a 52-week high of $255.89 and a 52-week low of $129.21.