Wolfe Research has reportedly named Applied Materials (NASDAQ:AMAT) its preferred semiconductor capital equipment (SCE) stock ahead of the upcoming earnings season. It is an understandable call given Applied Materials is well supported by industry fundamentals, but UK retail investors should recognise that the sector offers several high-quality alternatives, each with different risk/reward characteristics. The AI investment boom is no longer just about buying chip designers like Nvidia (NASDAQ:NVDA). Every advanced AI processor must first be manufactured in a semiconductor fabrication plant (‘fab’), and those fabs cannot operate without equipment supplied by companies such as Applied Materials, ASML (AMS:ASML), Lam Research…

Citi has downgraded UK equities from ‘overweight’ to ‘underweight’, arguing that the FTSE’s traditional strengths have become less compelling as global market leadership broadens beyond defensive sectors. The move marks a notable shift from one of the investment banks that had previously been constructive on the UK market. Citi’s central argument is that the investment backdrop has changed. Earlier in 2026, UK shares benefited from their heavy exposure to defensive industries such as pharmaceuticals, consumer staples, oil majors and mining companies. Investors also viewed the FTSE 100 as something of a geopolitical safe haven during heightened tensions in the Middle…

The 1 July 2026 semi-annual shareholder letter from Fundsmith Equity marks the biggest change in the fund’s investment process since its launch in 2010. Founder and lead manager Terry Smith acknowledges that the market environment has shifted materially and outlines a significant overhaul designed to improve returns after several years of lagging global equity markets. The key messages for UK retail investors are: Fundsmith letter to shareholders, July 2026 Fundsmith Factsheet Performance has become increasingly challenging Fundsmith enjoyed one of the strongest long-term records in UK retail investing during its first decade. However, recent years have been much more difficult.…

FTSE 100 tech specialist trust Polar Capital Technology Trust (LON:PCT) delivered another exceptionally strong year to 30 April 2026, comfortably outperforming global equity markets as artificial intelligence (AI), semiconductor and cloud infrastructure spending continued to accelerate. The hugely popular trust remains one of the strongest ways to access global AI and technology through the London market. Although the trust’s shares produced excellent returns, they still trade at a meaningful discount to net asset value (NAV), leaving investors with exposure to one of the strongest long-term technology portfolios at less than the value of its underlying assets. Polar Capital Technology Trust…

Arista Networks (NYSE:ANET) closed at a record $181.05 on 9 July 2026, extending a remarkable multi-year rally as investors continue to favour companies supplying the infrastructure powering artificial intelligence. Rather than building AI models itself, Arista provides the ultra-high-speed networking equipment that connects tens of thousands of GPUs inside hyperscale AI data centres, making it one of the clearest ‘picks-and-shovels’ beneficiaries of the AI investment boom. Arista Networks investor relations Arista Networks (NYSE:ANET)Price: $181.05 (+35% YTD)Market cap: ~$228m What does Arista Networks do? Arista designs and sells: Its biggest customers include hyperscalers such as Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), Alphabet…

A number of investment trusts are still trading at discounts exceeding 20%, offering potentially attractive opportunities if sentiment improves. After several difficult years for the investment trust sector, discounts have begun to narrow. The average UK investment trust now trades on a 9.6% discount to net asset value (NAV), the narrowest level since 2022, helped by lower interest rate expectations, mergers, buybacks and activist pressure. However, Investment trustApprox. NAV discountAIC sector averageDividend yieldHarbourVest Global Private Equity~22.5%Private Equity ~26%NilPantheon International~25%*Private Equity ~26%NilChrysalis Investments~44%**Growth Capital ~+13.8%Nil All share prices 9 July 2026. *NAV 31 May 2026. **NAV at 31 March 2026. Why…

The latest trading updates from 9 July 2026 reinforced that both Computacenter (LON:CCC) and Bytes Technology (LON:BYIT) continue to benefit from long-term digital transformation and AI infrastructure spending. Because both companies remain among the highest-quality technology businesses on the UK market. However, while both companies remain well positioned, the market’s reaction highlighted the different stages of their growth stories. Computacenter delivered another confident trading statement, building on its exceptionally strong first quarter, while Bytes Technology reassured investors at its AGM that demand remains healthy despite a more measured spending environment among some customers. Basically, investors viewed both updates positively, with…

For UK investors who feel they have missed the spectacular rally in the US ‘Magnificent Seven’ stocks and perhaps worry about US valuations per se, there is a sea of attractive opportunities elsewhere. Outside the US, investors can gain exposure to AI through semiconductor manufacturing, memory chips, industrial automation, internet platforms, enterprise software and digital infrastructure—often at considerably lower valuations. Many of these companies generate substantial free cash flow, have dominant competitive positions and trade on more modest earnings multiples than their US counterparts. Morningstar analysts continue to identify several non-US AI beneficiaries as undervalued despite the long-term structural AI…

Jet2’s (LON:JET2) shares jumped by almost 8% on 8 July after the company delivered a stronger-than-expected finish to its financial year, increased shareholder returns and struck a more optimistic tone on summer trading than investors had feared. The market had been concerned that geopolitical uncertainty, intense pricing competition and late booking trends would force a cautious outlook. Instead, management highlighted resilient demand, a successful launch at London Gatwick and continued confidence in the business model. Although Jet2 had already guided investors towards operating profit of £435-440 million in April, the full results reassured investors that margins remain resilient despite investment…

For many UK retirees, the debate between living off portfolio income (dividends, bond coupons and interest) or focusing on total return (income plus capital growth) is one of the most important investment decisions they will make. The traditional view was simple: invest for income and never touch your capital. Increasingly, however, financial planners argue that retirees should concentrate on the overall return from their investments, using a combination of natural income and occasional withdrawals from capital where appropriate. The reality is that neither approach is universally better. The best strategy depends on income needs, attitude to risk, life expectancy and…