Lam Research joined Sands Capital’s Select Growth Strategy as AI-driven sector shifts reshaped market leadership in the quarter.
Sands Capital Management added Lam Research (NASDAQ:LRCX) to its Select Growth Strategy during Q1 2026, citing the company’s role in semiconductor equipment amid rising AI infrastructure demand. The move reflects a broader market rotation toward asset-heavy sectors benefiting from AI-driven capital expenditure, which faced lower disruption risks compared to asset-light businesses.
U.S. large-cap growth stocks declined in the quarter, with the Russell 1000 Growth Index falling 9.8%, while Sands Capital’s strategy underperformed at -12.9%. The underperformance stemmed from the strategy’s focus on higher-growth, asset-light service businesses, which struggled as markets favored capital-intensive sectors. Geopolitical tensions with Iran late in the quarter triggered a risk-off shift, further pressuring equities despite strong corporate fundamentals.
AI-related investments continued to drive market dispersion, redirecting capital toward sectors tied to semiconductor manufacturing and infrastructure. Lam Research’s inclusion highlights the growing emphasis on companies positioned to benefit from long-term AI adoption trends.