Nvidia Remains Hedge Fund King, But Lam Research Climbs The Ranks

Core Insights - NVIDIA Corp (NVDA) remains the leading choice among hedge funds, but Lam Research Corp (LRCX) is emerging as a significant competitor in the second quarter of this year [1][2] - Lam Research has become the second "hottest" stock among institutional investors, following Nu Holdings Ltd (NU), while NVIDIA has dropped to rank 13 [2] - Hedge funds are increasingly focusing on the machinery required for AI chip production, positioning Lam Research as a critical player in the semiconductor supply chain [3] Company Performance - Lam Research's etching and deposition tools are essential for chipmakers like Taiwan Semiconductor Manufacturing Co Ltd (TSM) and Samsung Electronics Co., Ltd (SSNLF), driven by the rising demand for advanced 3nm and 2nm nodes [3] - Advanced Micro Devices Inc (AMD) and Qualcomm Inc (QCOM) have seen a decline in hedge fund interest, indicating a shift away from chip designers that do not possess the market dominance of NVIDIA or the equipment advantage of Lam [4] - KLA Corp (KLAC) has also gained traction, reflecting a broader institutional interest in semiconductor equipment [4] Market Trends - The trend indicates that hedge funds are diversifying their investments along the AI supply chain, moving from a focus solely on AI leaders like NVIDIA to a more comprehensive semiconductor ecosystem [5]