Sands Capital’s Q3 Letter Highlights AI Drivers as Select Growth Lags Benchmark
The update cites an AI-led rebound as security-level developments shape the strategy’s outlook.
Overview
- Select Growth returned 6.3% net in Q3 2025 versus a 10.5% benchmark gain, following a recovery tied to strong earnings, AI enthusiasm and rising hopes for Fed easing.
- Infrastructure momentum featured NVIDIA’s accelerating datacenter growth and an OpenAI–NVIDIA plan for at least 10 GW of systems beginning in 2026, TSMC’s raised guidance and CoWoS expansion, Oracle OCI’s large multi‑year AI commitments and Broadcom’s $10 billion booking for a fourth custom chip customer with expected 2026 impact.
- AppLovin reported 77% year‑over‑year revenue growth with 81% EBITDA margins and plans an AI‑first self‑serve ad manager beta in Q4 2025 ahead of a broader rollout in early 2026.
- Roblox’s viral Grow a Garden experience surpassed 20 million concurrent users and helped bookings accelerate about 51% year over year in the quarter.
- Investor responses diverged as Netflix lifted full‑year revenue guidance by $700 million and operating margin guidance to 30% yet saw profit‑taking, while Dexcom declined on industry weakness, heightened scrutiny and cautious 2025 guidance.