Artisan Global Opportunities Fund on Lam Research Corporation
Thesis
Lam Research has leading positions in semiconductor etching and deposition equipment. Results exceeded elevated expectations, margins proved stronger than anticipated and management guidance pointed to continued momentum. Rising wafer-fabrication investment, particularly in memory, underpins the equipment cycle; management estimated approximately $140 billion of industry spending in 2026. The fund trimmed as the shares approached the upper end of its valuation target range, while retaining exposure to the secular semiconductor buildout.
“Given the stock's recent appreciation and valuation approaching the upper end of our target range, we trimmed the position to manage risk and position size.”
Key risks
- The stock approached the upper end of the manager’s valuation target range.
- Memory-related and broader semiconductor capital spending could slow from current elevated levels.
- Temporary supply shortages may exaggerate pricing power across the AI supply chain.