Capex Rebound Powers Applied Materials’ (AMAT) Performance

Impax Asset Management's Q2 2026 investor letter revealed that Applied Materials, Inc. (NASDAQ:AMAT) played a significant role in the Impax US Sustainable Economy Fund's outperformance. The US Sustainable Economy portfolio surpassed the Russell 1000, with the Institutional Class achieving 17.96%, Investor Class at 17.95%, and Class A at 17.92%, compared to the index's 15.14%.

Sector allocation and stock selection were the primary drivers of the fund's success. Applied Materials, Inc. (NASDAQ:AMAT) was singled out for its sustainability exposure and corporate resilience. The company reported a recovery in semiconductor capital expenditure, with leading-edge logic and memory chipmakers increasing their investments.

Applied Materials' full-year guidance was also raised, reflecting the semiconductor equipment industry's resurgence. Despite a 12.91% decline in September 2026, the stock has seen a 180.60% increase over the past year. However, the fund's team believes that AI stocks present greater upside potential with lower downside risk.