Shares of Lam Research (NASDAQ: LRCX) have been riding high in 2023 thanks to the surge in semiconductor stocks -- which may seem a tad surprising at first given the rate at which the semiconductor manufacturing equipment company's revenue and earnings declined in the past few quarters.

Specifically, Lam stock is up 57% in 2023, outpacing the 38% jump in the PHLX Semiconductor Sector index. The company released its fiscal 2023 fourth-quarter results (for the quarter ended June 25) last month, and the stock surged thanks to better-than-expected numbers. But a closer look at Lam's performance in the previous quarter and its near-term outlook suggest that the company's turnaround is still some time away.

Savvy investors, however, continue to pile into Lam stock despite the challenges the company faces due to weak spending on semiconductor equipment. Let's see why that's the case, and check why this semiconductor stock remains a solid long-term bet even after notching terrific gains so far this year.

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Source Fool.com