Capex Rebound Powers Applied Materials’ (AMAT) Performance

Capex Rebound Powers Applied Materials’ (AMAT) Performance

Tue, September 8, 2026 at 5:39 PM GMT+3 3 min read

• AMAT +2.53%
• ^GSPC -0.32%

Impax Asset Management, based in London and specializing in sustainable investing, released its Q2 2026 investor letter for the "Impax US Sustainable Economy Fund". The letter can be downloaded here. The US Sustainable Economy portfolio outperformed the Russell 1000 in Q2 2026, with Institutional Class at 17.96%, Investor Class at 17.95%, and Class A at 17.92%, versus the index's 15.14%. Sector allocation and stock selection drove performance. The sustainability tools, including the Impax Sustainability Lens and Corporate Resilience framework, contributed positively. Equity markets rallied, with both the S&P 500 and Nasdaq reaching new highs before retreating. A key trend was rotation into AI and tech stocks, supported by mega-cap earnings and data center investments (US$750bn to US$1tn). In the second half of 2026, markets may remain volatile amid debates on AI adoption pace and economic momentum. However, growth tied to energy security and efficiency remains compelling, with demand for power, grid, and resource-efficient solutions supporting companies that benefit. The team focuses on businesses with strong growth, sound management, and attractive valuations, adjusting holdings as needed. This approach aims to build well-diversified, differentiated portfolios. Also, please check the fund's top five holdings for its best picks in 2026.

In its second-quarter 2026 investor letter, Impax US Sustainable Economy Fund highlighted Applied Materials, Inc. (NASDAQ:AMAT) as a notable contributor to performance. Applied Materials, Inc. (NASDAQ:AMAT) provides materials engineering solutions, equipment, services, and software to the semiconductor and related industries. On September 04, 2026, Applied Materials, Inc. (NASDAQ:AMAT) closed at $454.71 per share. Over the past month, Applied Materials, Inc. (NASDAQ:AMAT) declined 12.91%, but its shares are up 180.60% over the past year. Applied Materials, Inc. (NASDAQ:AMAT) has a market capitalization of $360.86 billion, and its stock has traded within a 52-week range of $161.75 - $739.67

Impax US Sustainable Economy Fund stated the following regarding Applied Materials, Inc. (NASDAQ:AMAT) in its Q2 2026 investor letter:

"Applied Materials, Inc. (NASDAQ:AMAT) (Semiconductor Equipment, Information Technology) is owned for its Sustainability Lens exposure to Digital Infrastructure and Education themes, and for its high Corporate Resilience score. The stock benefited from a recovery in semiconductor capital expenditure, with leading-edge logic and memory chipmakers restarting investment programs deferred from the prior year. Applied Materials reported strong order intake and revised its full-year guidance upward, reflecting the broad-based nature of the semiconductor equipment recovery."

Applied Materials, Inc. (NASDAQ:AMAT) is in 39th position on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 137 hedge fund portfolios held Applied Materials, Inc. (NASDAQ:AMAT) at the end of the second quarter which was 138 in the previous quarter. 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.

In another article, we discussed Applied Materials, Inc. (NASDAQ:AMAT) and highlighted Jim Cramer's strategy for buying the stock. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

This article is originally published at Insider Monkey.