Should You be Excited about the Prospects for Lam Research Corporation (LRCX)?

Columbia Threadneedle Investments, an investment management company, released its “Columbia Seligman Global Technology Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The US equities strongly rebounded in the second quarter following a turbulent first quarter. The fund’s Institutional Class shares returned 19.52% in the quarter, compared to a 23.18% return for the MSCI World Information Technology Index-Net. In addition, you can check the fund’s top 5 holdings for its best picks for 2025.

In its second-quarter 2025 investor letter, Columbia Seligman Global Technology Fund highlighted stocks such as Lam Research Corporation (NASDAQ:LRCX). Lam Research Corporation (NASDAQ:LRCX) designs, manufactures, markets, refurbishes, and services semiconductor processing equipment. The one-month return of Lam Research Corporation (NASDAQ:LRCX) was 23.28%, and its shares gained 51.41% of their value over the last 52 weeks. On September 24, 2025, Lam Research Corporation (NASDAQ:LRCX) stock closed at $128.32 per share, with a market capitalization of $162.189 billion.

Columbia Seligman Global Technology Fund stated the following regarding Lam Research Corporation (NASDAQ:LRCX) in its second quarter 2025 investor letter:

"The fund's holding in semiconductor equipment manufacturer Lam Research Corporation (NASDAQ:LRCX) contributed positively to performance as the stock moved higher during the second quarter. We are excited about the prospects for Lam Research, as the company is experiencing strong growth in areas like AI-driven semiconductor demand, particularly in high-bandwidth memory and advanced packaging. AI workloads require more advanced chips, which drives demand for Lam Research's deposition and etch solutions. The rebounding NAND flash market also contributed to the growth of the company, as its molybdenum and carbon gap-fill solutions continued to gain traction. Finally, from a strategic perspective, we are excited about Lam's continued investment in research and development (R&D), including technologies like Cryo 3.0 and the Aether dry resist system, which are continuing to give Lam Research a competitive edge."

Lam Research Corporation (NASDAQ:LRCX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 85 hedge fund portfolios held Lam Research Corporation (NASDAQ:LRCX) at the end of the second quarter, which was 91 in the previous quarter. In the June quarter, Lam Research Corporation (NASDAQ:LRCX) reported revenue of $5.17 billion, representing an increase of 10% from prior quarter. While we acknowledge the potential of Lam Research Corporation (NASDAQ:LRCX) 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 Lam Research Corporation (NASDAQ:LRCX) and shared the list of best technology stocks to invest in for the long term. 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.