NZS Capital, LLC, an investment management company, released its "NZS Growth Equity Strategy" second-quarter 2026 investor letter. A copy of the letter can be downloaded here. Equity markets delivered a strong performance in the second quarter of 2026, driven by demand for AI infrastructure, geopolitical stabilization, and positive earnings reports. The portfolio achieved a gross return of +24.96% and a net return of +24.76%, significantly outperforming the +14.79% return for the Morningstar Global Target Market Exposure Index. Overweight in Semiconductors, stock selection in areas like Software and Industrials, and zero exposure to Energy contributed to the Strategy's outperformance in the quarter. In addition, please check the Strategy's top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, NZS Growth Equity Strategy highlighted Lam Research Corporation (NASDAQ:LRCX). Lam Research Corporation (NASDAQ:LRCX) is a leading semiconductor equipment company that supplies semiconductor processing equipment for the fabrication of integrated circuits. On July 20, 2026, Lam Research Corporation (NASDAQ:LRCX) closed at $306.76 per share. One-month return of Lam Research Corporation (NASDAQ:LRCX) was -17.39%, and its shares gained 214.01% over the past 52 weeks. Lam Research Corporation (NASDAQ:LRCX) has a market capitalization of $383.62 billion.
NZS Growth Equity Strategy stated the following regarding Lam Research Corporation (NASDAQ:LRCX) in its Q2 2026 investor update:
"Information Technology contributed the most to absolute returns, though Industrials and Communication Services also outperformed. Each of the top-five individual contributors to absolute returns were in the Semiconductor industry and, more importantly, in the AI infrastructure ecosystem. Lam Research Corporation (NASDAQ:LRCX), which is a critical supplier of etching equipment used in the production of semiconductors, saw strengthening tailwinds to their outlook as some key chip manufacturing customers publicly committed to higher capital expenditures to expand capacity."
Lam Research Corporation (NASDAQ:LRCX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 123 hedge fund portfolios held Lam Research Corporation (NASDAQ:LRCX) at the end of the first quarter, up from 104 in the previous quarter. Lam Research Corporation's (NASDAQ:LRCX) revenue for the March quarter of 2026 was $5.84 billion, representing a 9% sequential increase and a 24% increase compared to Q1 2025. While we acknowledge the potential of Lam Research Corporation (NASDAQ:LRCX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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