Columbia Threadneedle Investments, an investment management company, released its “Columbia Seligman Global Technology Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. During the first period, the U.S. equity market declined and underperformed compared to its global developed-market counterparts. The fund’s Institutional Class shares returned -12.71% in the quarter, compared to –11.93% 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 2025.
In its first-quarter 2025 investor letter, Columbia Seligman Global Technology Fund highlighted stocks such as Lam Research Corporation (NASDAQ:LRCX). 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 14.09%, and its shares lost 9.06% of their value over the last 52 weeks. On June 25, 2025, Lam Research Corporation (NASDAQ:LRCX) stock closed at $96.02 per share, with a market capitalization of $122.821 billion.
Columbia Seligman Global Technology Fund stated the following regarding Lam Research Corporation (NASDAQ:LRCX) in its Q1 2025 investor letter:
“The portfolio’s holding in semiconductor equipment manufacturer Lam Research Corporation (NASDAQ:LRCX) contributed positively to performance as the stock moved higher during the first quarter. We are excited about the prospects for Lam Research, as the firm recently announced its ATLUS Halo, a tool that harnesses the capabilities of the metal molybdenum in the production of leading-edge semiconductors. Tungsten-based atomic layer deposition, pioneered by Lam, has been the predominant metallization technique for semiconductor chip deposition for over two decades, but the switch to molybdenum will help create memory and logic semiconductors for the future. Chip makers will need to shift beyond what is currently possible with tungsten, and this change will require many to update with Lam equipment, leading to increased sales. The fund also held a position in Japanese semiconductor company Renesas Electronics, which contributed to performance relative to the benchmark. The first quarter saw a large rotation to international stocks outperforming domestic securities, due primarily to concerns about U.S. tariffs, and the fund’s exposure to international firms like Renesas proved beneficial.”
A technician operating an automated semiconductor processing machine with laser accuracy.
Lam Research Corporation (NASDAQ:LRCX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 91 hedge fund portfolios held Lam Research Corporation (NASDAQ:LRCX) at the end of the first quarter, which was 84 in the previous quarter. In the March quarter, Lam Research Corporation (NASDAQ:LRCX) reported revenue of $4.72 billion, representing an increase of 24.4% from last year’s comparable 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 undervalued AI stock set for massive gains.
In another article, we covered Lam Research Corporation (NASDAQ:LRCX) and shared the list of best QQQ stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of 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.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
