Strong Demand Lifted Lam Research Corporation (LRCX) in Q4

Core Insights - Parnassus Mid Cap Fund outperformed the Russell Midcap Index in Q4 2025, returning 1.17% compared to the index's 0.16% [1] - The fund's year-to-date return is 12.85%, exceeding the index's 10.60% [1] - The fund is optimistic about mid-cap stocks driving market growth in 2026, particularly beyond AI [1] Company Insights - Lam Research Corporation (NASDAQ:LRCX) is highlighted as a key contributor to the fund's performance, with a market capitalization of $251.118 billion [2][3] - Lam Research's shares experienced a one-month return of -7.98% but gained 174.52% over the past 52 weeks [2] - The company is experiencing strong demand for its semiconductor processing equipment, driven by the AI megatrend [3] Hedge Fund Insights - Lam Research is not among the 40 most popular stocks among hedge funds heading into 2026, with 104 hedge fund portfolios holding the stock at the end of Q4, up from 93 in the previous quarter [3] - While Lam Research is recognized for its potential, the fund suggests that certain AI stocks may offer greater upside potential with less downside risk [3]