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NZS Capital Says AI‑Driven Semiconductor Bets Powered a Very Strong Q2

The firm attributes big outperformance to concentrated exposure to AI infrastructure suppliers and a disciplined strategy of trimming and small optionality stakes.

Overview

  • NZS published its Q2 2026 investor letter on July 20–21 reporting gross return of +24.96% and net return of +24.76%, versus the Morningstar Global Target Market Exposure Index return of +14.79%.
  • The firm said an overweight in semiconductors and stock selection in software and industrials drove performance and that zero exposure to energy helped relative returns.
  • NZS named Lam Research as a top contributor and tied its strength to public commitments by key chipmakers to raise capital spending to expand capacity.
  • The manager trimmed Marvell back to a small optionality position after a Computex-driven re‑rating following Jensen Huang’s praise, saying the company’s fundamental outcome range had not narrowed enough to keep a larger stake.
  • NZS added Axogen as a modest optionality position after BLA approval for its Avance nerve allograft and improving insurance coverage, and the letter reported changes in hedge‑fund holding counts for Lam, Axogen and Marvell as a signal of shifting investor positioning.