Impax Asset Management, an investment management firm based in London, specializing in sustainable investing, released its first-quarter 2026 investor letter for its “Impax US Sustainable Economy Fund”. A copy of the letter is available to download here. The US Sustainable Economy portfolio underperformed the Russell 1000 benchmark in Q1 2026, primarily due to its lack of exposure to the surging Energy sector. Despite some initial support from solid corporate earnings and falling bond yields, the market became risk-averse due to escalating tensions in the Middle East. This resulted in rising energy prices and inflation expectations, ending a three-quarter winning streak for the S&P 500 index. The firm believes there will be a renewed focus on solutions like renewables that enhance energy security and efficiency, along with investments in better grids, power storage, and technologies to reduce energy intensity. In addition, please check the firm’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Impax US Sustainable Economy Fund highlighted Applied Materials, Inc. (NASDAQ:AMAT) as a leading 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 May 28, 2026, Applied Materials, Inc. (NASDAQ:AMAT) stock closed at $449.68 per share. One-month return of Applied Materials, Inc. (NASDAQ:AMAT) was 16.41%, and its shares gained 188.94% over the past 52 weeks. Applied Materials, Inc. (NASDAQ:AMAT) has a market capitalization of $339.16 billion.
Impax US Sustainable Economy Fund stated the following regarding Applied Materials, Inc. (NASDAQ:AMAT) in its Q1 2026 investor letter:
“Applied Materials, Inc. (NASDAQ:AMAT) (Information Technology, Semiconductor Materials & Equipment) is owned for its better-than-average Corporate Resilience profile and attractive sustainability opportunities including Resource Efficiency, Enhancing Productivity and Digital Infrastructure. Applied Materials rallied strongly primarily on the back of a blowout February earnings beat, where management guided for over 20% semiconductor equipment revenue growth in calendar 2026 and positioned the company as a direct beneficiary of accelerating AI infrastructure investment in leading-edge logic, high-bandwidth memory, and advanced packaging. Despite a sharp pullback in March on China export control concerns and revenue headwinds, the stock closed the quarter meaningfully higher.”
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 most widely held stocks by individuals in 2026. 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.
