RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q1 2026 investor letter. A copy of the letter can be downloaded here. The US stock market declined in the quarter with the S&P 500 index (“S&P”) and the Russell 1000 Growth index (“RLG”) falling 4.33% and 9.78%, respectively. Markets started the year positively but became volatile mainly due to increased tensions with Iran. The Federal Reserve kept rates unchanged in January and February. Still, rising energy prices and weaker economic data sparked concerns about stagflation, leading investors to rethink the timing and scale of future rate cuts. Investor sentiment shifted from growth and tech stocks amid inflation, interest rate, and supply chain concerns. Opposing AI-driven rotations heavily influenced investor sentiment, affecting growth stocks—enthusiasm grew for semiconductor firms linked to AI infrastructure spending, while enterprise software companies, viewed as vulnerable to AI disruption, faced pessimism. The Fund’s software holdings were sold off heavily, while the underweight in semiconductor companies, which benefited most from AI infrastructure spending, affected the performance. Despite challenges, the firm remains confident in the long-term prospects and valuations of its portfolio companies. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, RiverPark Large Growth Fund highlighted Applied Materials, Inc. (NASDAQ:AMAT) as a top contributor. Applied Materials, Inc. (NASDAQ:AMAT) is a leading supplier of materials engineering solutions, equipment, services, and software to the semiconductor and related industries. On July 2, 2026, Applied Materials, Inc. (NASDAQ:AMAT) closed at $603.04 per share. One-month return of Applied Materials, Inc. (NASDAQ:AMAT) was 33.12%, and its shares gained 215.65% over the past 52 weeks. Applied Materials, Inc. (NASDAQ:AMAT) has a market capitalization of $493.22 billion.
RiverPark Large Growth Fund stated the following regarding Applied Materials, Inc. (NASDAQ:AMAT) in its Q1 2026 investor letter:
“Applied Materials, Inc. (NASDAQ:AMAT): AMAT was the portfolio’s top contributor for the quarter, advancing 33% as its strong fiscal Q1 2026 earnings report, released on February 12, significantly outperformed expectations. The company reported revenue of $7.01 billion, above the $6.88 billion consensus estimate, and adjusted EPS of $2.38, beating expectations of $2.21 per share. Management attributed the results to accelerating industry investments in AI computing, with strength across semiconductor systems, Applied Global Services, and display segments. Guidance for fiscal Q2 2026 was issued above prior expectations at $7.15–$8.15 billion in revenue and EPS of $2.44 $2.84, with management noting that AI-related demand for high-bandwidth memory, leading edge logic, and advanced packaging tools was tracking above plan. The stock rose over 8% on the day of the earnings release and continued to appreciate throughout the quarter, supported by multiple foundry customers raising their 2026 capex plans.
We continue to view Applied Materials as one of the most structurally advantaged companies in the semiconductor capital equipment ecosystem. Its broad technology portfolio, leadership in high-bandwidth memory and gate-all-around logic, and deep customer relationships position it to capture a disproportionate share of the AI-driven semiconductor equipment cycle. With strong recurring service revenue, robust cash generation, and consensus modeling EPS of approximately $11 in fiscal 2026, AMAT remains a compelling long-term compounder.”
Applied Materials, Inc. (NASDAQ:AMAT) ranks 39 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 138 hedge fund portfolios held Applied Materials, Inc. (NASDAQ:AMAT) at the end of the first quarter, up from 111 in the previous quarter. In the second quarter of fiscal 2026, Applied Materials, Inc. (NASDAQ:AMAT) reported record revenue of $7.91 billion, up 13% sequentially and 11% year-over-year. While we acknowledge the risk and potential of Applied Materials, Inc. (NASDAQ:AMAT) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Applied Materials, Inc. (NASDAQ:AMAT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Applied Materials, Inc. (NASDAQ:AMAT) and shared the list of stocks on the rise. In addition, please check out our hedge fund investor letters Q1 2026 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.
