Here's Why Entegris (ENTG) Declined in Q2

The London Company, an investment management company, released “The London Company Mid Cap Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities saw a double-digit surge in the second quarter following a sharp decline in the first quarter. The mid-cap composite rose 5.7% (5.5% net) in the second quarter, falling short of the Russell Midcap Index’s 8.5% increase. Please review the fund's top 5 holdings to gain insight into their key selections for 2025.

In its second quarter 2025 investor letter, The London Company Mid Cap Strategy highlighted stocks such as Entegris, Inc. (NASDAQ:ENTG). Headquartered in Billerica, Massachusetts, Entegris, Inc. (NASDAQ:ENTG) offers materials and process solutions for the semiconductor and other high-technology industries. The one-month return of Entegris, Inc. (NASDAQ:ENTG) was 7.28%, and its shares lost 21.59% of their value over the last 52 weeks.  On July 29, 2025, Entegris, Inc. (NASDAQ:ENTG) stock closed at $92.85 per share with a market capitalization of $14.057 billion.

The London Company Mid Cap Strategy stated the following regarding Entegris, Inc. (NASDAQ:ENTG) in its second quarter 2025 investor letter:

"Entegris, Inc. (NASDAQ:ENTG) – ENTG continues to be weak due to challenges from underutilized mainstream fabs, less visibility in older technology, and weaker capex-driven demand. ENTG’s solutions for advanced technology and incremental wafer content gains continue to trend upward. ENTG is one of the most diversified players in the semi-materials industry, with its size and scale. We remain attracted to the industry’s high barriers to entry, limited competitors, and high switching costs."

Entegris, Inc. (NASDAQ:ENTG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Entegris, Inc. (NASDAQ:ENTG) at the end of the first quarter compared to 47 in the previous quarter. While we acknowledge the potential of Entegris, Inc. (NASDAQ:ENTG) 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 covered Entegris, Inc. (NASDAQ:ENTG) and shared Sands Capital Global Growth Fund's views on the company in the previous quarter. The London Company Mid Cap Strategy increased its stakes in Entegris, Inc. (NASDAQ:ENTG) in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.