Columbia Seligman Global Technology Fund cites margin compression at WIX amid rising AI infrastructure costs in Q2 2026.
Wix.com Ltd. (NASDAQ:WIX) faces margin pressure as heavy AI investment and higher interest rates strain free cash flow, according to a Q2 2026 investor letter from Columbia Seligman Global Technology Fund. The fund highlighted concerns over valuation risks despite strong demand for AI infrastructure and data-center spending.
The fund’s Institutional Class shares returned 50.34% in Q2 2026, outperforming the MSCI World Information Technology Index’s 33.65% gain. Semiconductor and software stock selection drove performance, while financials and consumer discretionary exposure detracted. AI-driven demand for semiconductors and cloud services supported the rally, but geopolitical uncertainty and elevated rates remain headwinds.
Columbia Seligman expects AI and data-center investment to sustain growth, though rising costs could limit upside for companies like WIX. The fund holds 50–75 tech stocks, focusing on undervalued businesses through bottom-up research.