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Generation Investment Management, an investment management firm, released its “Global Equity Strategy” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter of 2023, portfolio revenues increased by 10% YoY. In a challenging environment, the median company in the portfolio had a modest operating income growth. This has increased already strong conviction in the portfolio. The companies are well-managed and of high quality. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Generation Investment Management highlighted stocks like Applied Materials, Inc. (NASDAQ:AMAT) in the second quarter 2023 investor letter. Headquartered in Santa Clara, California, Applied Materials, Inc. (NASDAQ:AMAT) provides material engineering solutions for semiconductors, display, and related industries. On September 6, 2023, Applied Materials, Inc. (NASDAQ:AMAT) stock closed at $153.18 per share. One-month return of Applied Materials, Inc. (NASDAQ:AMAT) was 5.52%, and its shares gained 66.61% of their value over the last 52 weeks. Applied Materials, Inc. (NASDAQ:AMAT) has a market capitalization of $128.14 billion.
Generation Investment Management made the following comment about Applied Materials, Inc. (NASDAQ:AMAT) in its Q2 2023 investor letter:
Applied Materials, Inc. (NASDAQ:AMAT): Semiconductor revenue has grown 6% per year since 2010, driven by increasing demand for smartphones, datacentres and electronic content in vehicles and industrial settings.4 Through work spanning six roadmaps covering many sub-themes within semiconductors (including industry consolidation, capital equipment and generative AI), we are confident that these trends will continue or even accelerate in the coming decades. The rise of generative AI in particular will require high-performing semiconductors, such as Nvidia’s GPUs, in datacentres.