ewsba.se
Artisan Partners, an investment management company, released its first-quarter 2026 investor letter for the “Artisan Mid Cap Fund”. A copy of the letter is available to download here. In Q1 2026, the Artisan Mid Cap Fund reported negative absolute returns but slightly outperformed the Russell Midcap® Growth Index. The market favored lower volatility and income-oriented equities, with value outpacing growth significantly. Despite challenges for growth strategies, selective stock choices in sectors like industrials and healthcare provided strength, while consumer discretionary faced weaknesses. Mid- and small-cap indices showed resilience amid lagging large-cap growth stocks. The escalating conflict in Iran influenced market behavior, and AI-related investments continued to support capital spending and earnings. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Artisan Mid Cap Fund highlighted Semtech Corporation (NASDAQ:SMTC) as a newly added position. Semtech Corporation (NASDAQ:SMTC) is a semiconductor company that develops and provides analog and mixed signal chips, Internet of Things systems, and cloud connectivity services solutions. On May 8, 2026, Semtech Corporation (NASDAQ:SMTC) closed at $121.81 per share. One-month return of Semtech Corporation (NASDAQ:SMTC) was 32.65%, and its shares gained 218.71% over the past 52 weeks. Semtech Corporation (NASDAQ:SMTC) has a market capitalization of $11.34 billion.
Artisan Mid Cap Fund stated the following regarding Semtech Corporation (NASDAQ:SMTC) in its Q1 2026 investor letter:
"During the quarter, we initiated new positions in Semtech Corporation (NASDAQ:SMTC), Tradeweb Markets and SiTime. Semtech designs semiconductor solutions for high-performance analog and mixed-signal connectivity used in data centers, communications and industrial applications. We initiated a GardenSM position, supported by rising AI-driven bandwidth demand and the need for high-speed connectivity solutions. In addition, a potential divestiture of the lower quality Sierra Wireless business could simplify the story and supports higher earnings estimates and multiple expansion."
Semtech Corporation (NASDAQ:SMTC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 43 hedge fund portfolios held Semtech Corporation (NASDAQ:SMTC) at the end of the fourth quarter, up from 42 in the previous quarter. While we acknowledge the potential of Semtech Corporation (NASDAQ:SMTC) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In another article, we covered Semtech Corporation (NASDAQ:SMTC) and shared the list of best semiconductor stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.