Lam Research (LRCX)

LRCX has dropped fast enough that its price sits well below where it's been trading all year.

What is going on right now?

Lam Research's stock has fallen sharply in a short stretch, with heavier-than-usual trading activity. Broader worries about a slowing economy and upcoming central bank decisions have weighed on the whole chip equipment sector.

How is the business itself doing?

Lam makes the machines that factories use to produce chips. Its revenue grew about 54% and its profits grew roughly 77% over the past year, with about a third of every dollar in sales turning into profit.

What stands out?

Almost 89% of its shares are held by large institutions, and its price tends to swing nearly twice as much as the broader market on any given day.

What comes next?

Reports about spending on new chip factories tied to the current wave of AI development are the specific driver to watch, since Lam's equipment is what those factories need to operate.