Why Lam Research Stock Surged 18.2% in June

Shares of Lam Research (NASDAQ: LRCX) rose 18.2% in June, according to data from S&P Global Market Intelligence. The semiconductor equipment stock received a boost after several promising announcements from high-profile customers during the month. These announcements portend well for customer growth, which means sales of Lam's machines and services should follow.

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In mid-June, the world's largest semiconductor foundry, Taiwan Semiconductor Manufacturing (NYSE: TSM), announced that it would be investing $12 billion in a new advanced semiconductor manufacturing plant in Arizona. Taiwan Semiconductor will reportedly get subsidies from the U.S. government to build the site, and government subsidies could also be going to other large semiconductor manufacturers as well, as the U.S. wishes to retain leading semiconductor manufacturing capability within its borders.

Source Fool.com