Columbia Threadneedle Investments, an investment management company released its “Columbia Seligman Global Technology Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. Equity markets rose in the third quarter with the large-cap Russell 1000 Index gaining 6.08%, raising its year-to-date return to 21.18%. The fund’s Institutional Class shares returned 1.00% in the quarter, compared to a 1.52% return for the MSCI World Information Technology Index-Net. In addition, you can check the fund’s top 5 holdings for its best picks for 2024.
Columbia Seligman Global Technology Fund highlighted stocks like Lam Research Corporation (NASDAQ:LRCX) in the third quarter 2024 investor letter. Lam Research Corporation (NASDAQ:LRCX) designs, manufactures, markets, refurbishes, and services semiconductor processing equipment. The one-month return of Lam Research Corporation (NASDAQ:LRCX) was -7.18%, and its shares gained 2.32% of their value over the last 52 weeks. On November 26, 2024, Lam Research Corporation (NASDAQ:LRCX) stock closed at $72.69 per share with a market capitalization of $93.53 billion.
Columbia Seligman Global Technology Fund stated the following regarding Lam Research Corporation (NASDAQ:LRCX) in its Q3 2024 investor letter:
“Lam Research Corporation (NASDAQ:LRCX) was a disappointing position for the fund during the quarter despite strong long-term returns. The stock experienced volatility in July on the back of a rotation out of large-cap technology into small-cap stocks and some general investor fears about the ROI potential from the AI spend. Escalating tensions between the United States and China have impacted Lam’s returns, as U.S. restrictions on high-tech exports to China, particularly advanced AI chips, have been a major negative for chip providers. The fund had an overweight position to Bloom Energy during the quarter and the stock moved lower, which detracted from performance relative to the fund’s benchmark. We continue to believe that Bloom has the best technology in the world to solve the electricity shortage that overhangs new AI data center builds in the U.S. and around the world. Bloom’s fuel cells plug into natural gas lines and can fit on a data center’s campus without taking up too much real estate. Other solutions to the “time to power” issue inherently take too long to provision, namely, nuclear, wind and solar power as well as new transmission and generation infrastructure.”
A technician operating an automated semiconductor processing machine with laser accuracy.
Lam Research Corporation (NASDAQ:LRCX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 58 hedge fund portfolios held Lam Research Corporation (NASDAQ:LRCX) at the end of the third quarter which was 84 in the previous quarter. Lam Research Corporation’s (NASDAQ:LRCX) revenue for the third quarter was $4.17 billion, an increase of 8% from the prior quarter. While we acknowledge the potential of Lam Research Corporation (NASDAQ:LRCX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Lam Research Corporation (NASDAQ:LRCX) and shared the list of AI news and ratings you should not miss. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.