Sands Capital Select Growth Fund names Lam Research a Q2 standout
Sands Capital's Select Growth Fund returned 23.2% in the second quarter of 2026, outpacing the Russell 1000 Growth Index's 16.7%, according to the fund's Q2 2026 investor letter. The firm credited U.S. large-cap growth equities' rebound, driven by improving corporate fundamentals and renewed investor confidence in AI despite geopolitical uncertainties, while noting that gains were narrow and concentrated among AI beneficiaries. Within that mix, the portfolio's success came from AI infrastructure holdings, especially memory and storage, supported by better pricing and tightening supply.
Lam Research cited for etch and deposition strength
The fund singled out Lam Research Corporation (NASDAQ:LRCX) as a critical supplier of etch and deposition equipment, products that become more important as memory architectures and leading-edge semiconductor manufacturing grow more complex. The letter said the stock "benefited from renewed confidence in semiconductor capital spending and the rising complexity of chip manufacturing." Lam Research held a 4.7% portfolio weight in the fund and contributed 2.2% to the fund's performance for the quarter.
Operating metrics underscore the chip-equipment backdrop
Sands Capital highlighted that Lam Research's first-quarter revenue grew 24% year over year and adjusted earnings per share rose 42%, with June-quarter guidance exceeding consensus expectations. The fund framed the company as central to the wider push to scale AI, which is prompting investments in memory, CPUs, AI chips, and semiconductor manufacturing to address emerging bottlenecks.
Market valuation and recent share performance
Lam Research shares closed at $290.20 on September 1, 2026, giving the company a market capitalization of $363.13 billion, per data cited in the investor letter. The stock was down 5.60% over the prior month but up 196.91% over the trailing year, reflecting volatility within a broader chip-equipment upcycle that Sands Capital expects to continue as AI compute demand pulls more spending into advanced manufacturing tools.
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