Lam Research stock dropped from its June high. The author sees opportunity. That's the headline. That's the whole f*cking thesis.
Not for the faint of heart. Love that phrase. Means nothing. Every stock ad says it. Every Seeking Alpha contributor types it while eating their third Hot Pocket of the morning. It's financial writing for people who want to sound like they've read Hemingway but stopped after the title page.
Here's what happened: AI demand pushed chipmaking equipment sales up. Memory chips too. Advanced packaging got a boost. Lam Research makes the equipment that makes the chips. The stock went up. Then it went down. Now some guy thinks it'll go up again.
Groundbreaking stuff.
Retail traders read "not for the faint of heart" and think they're storming Normandy. They're buying three shares at $87 with money they need for rent. They'll check the stock price forty-seven times before lunch. They'll panic sell at $82 after reading one bearish tweet from a guy whose bio says "Not financial advice" and whose profile picture is a cartoon wolf.
The technical setup doesn't care about AI demand. The chart doesn't read press releases about advanced packaging. Price either breaks resistance or it doesn't. Volume either confirms the move or it's a head fake. That's it. That's the whole game.
But no. We need stories. We need narratives about semiconductor cycles and capital equipment spending and memory market dynamics. We need to feel smart about our gambling addiction.
Lam Research pulled back from its high. Every stock that goes up eventually pulls back from its high. It's called a high because it was the highest point. Mathematics invented the concept thousands of years ago. Still blows people's minds apparently.
The opportunity the author sees is that the stock went down and might go back up. Pulitzer-worthy analysis. Really pushing the boundaries of human thought. I see opportunity too: shorting the reading comprehension skills of anyone who needed this article.
Photo by Brecht Corbeel on Unsplash
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