Lam Research stock surges on AI data-center and memory spending

Columbia Seligman Global Technology Fund released its Q2 2026 investor letter, highlighting Lam Research Corporation (NASDAQ:LRCX) as one of its largest positions during the quarter. Lam Research is a semiconductor equipment manufacturer that designs, manufactures, markets, refurbishes, and services processing equipment used in integrated-circuit fabrication. During Q2 2026, the fund's Institutional Class shares returned 50.34%, outperforming the MSCI World Information Technology Index's 33.65% gain, with stock selection in semiconductors, technology hardware and software, along with an off-benchmark electrical equipment allocation, supporting relative performance. Technology stocks rallied broadly as concerns over the Iran conflict eased and AI infrastructure spending boosted demand for semiconductors, memory, networking, servers and power solutions. Lam Research stock appreciated significantly as investors became increasingly optimistic that AI-driven data-center spending would sustain robust demand for advanced semiconductor manufacturing equipment. Concurrently, memory customers accelerated investments in high-bandwidth memory and dynamic random-access memory (DRAM) capacity. The fund attributed Lam's strength to improving semiconductor-industry fundamentals, strong earnings execution and growing confidence that leading-edge logic and memory capital expenditures would remain elevated through 2026, which would support Lam's revenue and margin outlook. On July 27, 2026, Lam Research closed at $291.61 per share, with a one-month return of -32.70% and a 52-week gain of 194.73%. The stock's 52-week trading range was between $90.94 – $438.50, and the company has a market capitalization of $364.68 billion（約58兆円）. 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, the letter cautions that geopolitical uncertainty, higher interest rates and heavy AI investment could pressure valuations and free cash flow going forward.

Lam Research's appreciation during Q2 2026 reflects a confluence of near-term operational strength and longer-term AI infrastructure tailwinds. The letter notes that semiconductor stocks rallied broadly as concerns over the Iran conflict eased and AI infrastructure spending boosted demand for semiconductors, memory, networking, servers and power solutions. Within this environment, Lam Research benefited not only from the broader technology sector momentum but also from specific customer signals: memory manufacturers are accelerating investment in high-bandwidth memory and DRAM capacity—both of which require advanced fabrication equipment. The fund's confidence rests partly on execution: Lam has demonstrated strong earnings and improved semiconductor-industry fundamentals. Looking ahead, the fund expects AI and data-centre investment to remain strong through 2026, underpinned by broadening earnings growth and improving software bookings, cloud consumption and customer spending. However, the letter also warns of countervailing pressures—geopolitical uncertainty, higher interest rates and the sheer scale of AI investment itself could constrain valuations and free cash flow. This tension suggests that while Lam's revenue visibility appears solid through 2026, margin expansion may face headwinds.

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