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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InIn a move reflecting growing caution toward tech sector valuations, Vltava Fund liquidated its entire position in Lam Research during the second quarter of 2026. The fund attributed the sale to the stock reaching speculative valuation levels of 20x sales and 50x earnings. According to reports, the fund believes the current price requires unrealistic long-term growth to justify, especially given the cyclical nature of the semiconductor industry.
This exit comes as major semiconductor firms face mixed pressures; market data shows competitors like Applied Materials trading at historically lower multiples, supporting the fund's view on LRCX overvaluation. Looking at previous quarter results, while the company posted strong growth, Wall Street analysts have warned that future guidance may not keep pace with current valuations that significantly exceed five-year averages per search data.
Regarding price action, LRCX stood at $351.41 (at close July 02, 2026), having traded within a range of $342.48 to $392.50 in recent sessions. Traders are looking ahead to the China Manufacturing PMI release on June 30, which could impact semiconductor supply chains, while monitoring technical support levels near the recent low of $342.48.