Here’s Why Dolby Laboratories (DLB) Traded Down in Q2

The Cambiar SMID Fund reported a 14.39% return in Q2 2026, their best performance since Q4 2022, but the fund underperformed the index. Notably, the fund's top five holdings were identified as potential picks for 2026. Among the holdings, Dolby Laboratories, Inc. (NYSE:DLB) was highlighted in the fund's Q2 2026 investor letter. Dolby Laboratories specializes in audio, imaging, accessibility, and hardware/software solutions for entertainment industries.

The company closed at $58.74 per share on September 16, 2026, down 8.49% over the past month and 18.53% over the past 52 weeks. Dolby Laboratories has a market cap of $5.5 billion and traded between $48.26 and $73.01 over the past year. The fund attributed its partial offset of Dolby's decline to exposure to the semiconductor industry through Lattice Semi and On Semiconductor holdings.

However, the weakness in Dolby is attributed to the consumer electronics sector experiencing a drop in sales due to higher memory prices. Despite Dolby's unique IP licensing business model benefiting from higher product prices, the company's growth has been disappointing. The fund maintains a position in Dolby Laboratories but is closely monitoring the situation, preferring other AI stocks with better upside potential and lower downside risk.