A couple of weeks ago, I highlighted bad sales and booking news from Dutch semiconductor equipment manufacturer ASML (ASML -2.42%), and pointed out how this might make investors in American peer Lam Research (LRCX -4.26%) want to sell their stock ahead of earnings.

Now earnings are out, and today, Lam Research stock is down 5% through 10:35 a.m. ET.

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Lam Research's Q2 earnings

It turns out I was right to worry about Lam Research stock -- but for the life of me, I don't know why!

Two weeks ago, ASML's earnings report showed sales growth of less than 1%, and a slowdown in bookings foreshadowing a slowdown in demand for artificial intelligence (AI) chips -- or at least for the machines that make them. But based on Lam Research's last-night report, it now seems Lam is not suffering anywhere near the ill-effects that ASML is.

To the contrary.

In Q2, analysts forecast Lam would earn $1.21 per share on $5 billion in sales. In fact, the company reported generally accepted accounting principles (GAAP) profit of $1.35 and sales of $5.2 billion. Sales grew a respectable 10% year over year, and earning surged 31%. Management even delivered great guidance -- $1.10 to $1.30 in profit for Q3, and sales between $4.9 billion and $5.5 billion, both numbers much better than Wall Street had forecast.

Is Lam Research stock a sell?

Mind you, I'm still a little leery of Lam's valuation. Priced near 27 times trailing earnings, and even more expensive when valued on free cash flow, the stock looks risky to me if Lam can't deliver on the guidance it gave. Still, 31% earnings growth in Q2 goes a long way to allaying those concerns.

Lam stock may not be cheap enough to buy -- but I wouldn't call it a "sell" either.