Sands Capital, an investment management company, released its “Sands Capital Technology Innovators Fund” Q2 2026 investor letter. A copy of the letter can be downloaded here. In the quarter, global equities rebounded sharply, with the MSCI ACWI posting its strongest quarterly gain since 2020, supported by broad market strength, easing geopolitical tensions, and continued enthusiasm for AI infrastructure. Information technology led the advance, with semiconductor and hardware companies accounting for most of the index’s rise. The fund returned 26.9% (net) in the second quarter of 2026. The portfolio benefited from strong gains across memory, software infrastructure, cybersecurity, and other AI-related holdings, although its concentrated exposure to mega-cap chip designers and manufacturers weighed on relative performance as leadership broadened into CPUs, networking, and memory. Vertical software, internet, and financial holdings were modest detractors amid macro concerns and uncertainty over AI disruption. The fund remains focused on critical AI bottlenecks, including compute, memory, manufacturing, networking, and power, while retaining selected businesses that may use AI to strengthen their competitive positions. You can check the fund’s top five holdings to learn more about its leading investment ideas for the year.
In its second-quarter 2026 investor letter, Sands Capital Technology Innovators Fund highlighted NVIDIA Corporation (NASDAQ:NVDA). NVIDIA Corporation (NASDAQ:NVDA) is a leading data center-scale AI infrastructure company that operates through Compute & Networking and Graphics segments. On August 06, 2026, NVIDIA Corporation (NASDAQ:NVDA) stock closed at $218.99 per share. One-month return of NVIDIA Corporation (NASDAQ:NVDA) was 6.43%, and its shares gained 22.90% over the past 52 weeks. NVIDIA Corporation (NASDAQ:NVDA) has a market capitalization of $5.3 trillion.
Sands Capital Technology Innovators Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2026 investor letter:
“NVIDIA Corporation’s (NASDAQ:NVDA) contribution reflected continued evidence that demand for accelerated computing remains robust. First-quarter revenue grew 85 percent and earnings per share grew 131 percent, driven by sustained demand for AI infrastructure. While GPUs remain the core driver, the company’s opportunity is broadening as AI adoption expands from training toward inference, agentic workflows, and enterprise use cases. Management also highlighted meaningful standalone CPU revenue visibility, reinforcing NVIDIA’s evolution from a GPU supplier into a systems-level provider across the AI infrastructure stack. We believe NVIDIA remains one of the clearest beneficiaries of a large and potentially underappreciated AI capital spending cycle.”
NVIDIA Corporation (NASDAQ:NVDA) is in fourth position on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 275 hedge fund portfolios held NVIDIA Corporation (NASDAQ:NVDA) at the end of the fourth quarter, compared to 264 in the previous quarter. In the first quarter of fiscal year 2027, NVIDIA Corporation (NASDAQ: NVDA) reported revenues of $82 billion, achieving an impressive 85% year-over-year growth. While we acknowledge the risk and potential of NVIDIA Corporation (NASDAQ:NVDA) 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 NVIDIA Corporation (NASDAQ:NVDA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered NVIDIA Corporation (NASDAQ:NVDA) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q2 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.
