Applied Materials (AMAT) Rose on AI-Driven Wafer Fabrication Spending

Applied Materials (AMAT) Rose on AI-Driven Wafer Fabrication Spending Soumya Eswaran Tue, July 28, 2026 at 3:30 PM GMT+2 3 min read AMAT Columbia Threadneedle Investments, an investment management company, released its "Columbia Seligman Global Technology Fund" second quarter 2026 investor letter. A copy of the letter can be downloaded here . During the quarter, the Fund's Institutional Class shares returned 50.

34%, outperforming the MSCI World Information Technology Index's 33. 65% gain. Stock selection in semiconductors, technology hardware and software, together with an off-benchmark electrical equipment allocation, supported relative performance, while exposure to financials, consumer discretionary and healthcare detracted.

Technology stocks rallied as concerns over the Iran conflict eased and AI infrastructure spending boosted demand for semiconductors, memory, networking, servers and power solutions. The Fund expects AI and data-centre investment to remain strong, supported by broadening earnings growth and improving software bookings, cloud consumption and customer spending. However, geopolitical uncertainty, higher interest rates and heavy AI investment could pressure valuations and free cash flow.

The strategy holds 50–75 technology companies across market capitalisations and uses bottom-up GARP research to identify misunderstood and undervalued businesses in the technology industry. In addition, please check the Fund's top five holdings to know its best picks in 2026. In its second-quarter 2026 investor letter, Columbia Seligman Global Technology Fund highlighted Applied Materials, Inc.

 (NASDAQ: AMAT ). Applied Materials, Inc. (NASDAQ:AMAT) provides materials engineering solutions, equipment, services, and software to the semiconductor and related industries.

On July 27, 2026, Applied Materials, Inc. (NASDAQ:AMAT) closed at $516. 89 per share.

One-month return of Applied Materials, Inc. (NASDAQ:AMAT) was -28. 51% and its shares gained 174.

34% over the past 52 weeks. Applied Materials, Inc. (NASDAQ:AMAT) has a market capitalization of about $410.

39 billion. Columbia Seligman Global Technology Fund stated the following regarding Applied Materials, Inc. (NASDAQ:AMAT) in its Q2 2026 investor letter: "The fund also held an overweight position in Applied Materials, Inc.

  (NASDAQ:AMAT), which operates in a similar space as Lam Research. The company's share price rose during the quarter as its investor base grew more confident that AI-driven semiconductor demand would support sustained wafer fabrication equipment spending, specifically in leading-edge logic and advanced packaging. " Applied Materials (AMAT) - Among Billionaire Steven Cohen’s Top 11 Dividend Stock Picks 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 potential of Applied Materials, Inc. (NASDAQ:AMAT) 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 .

Story Continues In another article , we covered Applied Materials, Inc. (NASDAQ:AMAT) and shared a list of best stocks to buy for high returns. 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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