Here’s What Drove Mairs & Power Growth Fund to Pick Cognex Corporation (CGNX)

6 hours ago 2

Soumya Eswaran

Thu, December 11, 2025 astatine 7:24 AM CST 3 min read

Mairs & Power, an concern advisor, released the third-quarter 2025 capitalist missive for the “Mairs & Power Growth Fund.” A transcript of the missive tin beryllium downloaded here. In 2025, the marketplace dominance continues to ore connected a tiny radical of mega-cap stocks associated with artificial quality (AI). The money gained 7.99% successful the 3rd quarter, broadly accordant with the S&P 500 Total Return (TR) Index’s 8.12% instrumentality and up of its adjacent group, the Morningstar Large Blend index’s 6.93% gain. YTD, the money is up 10.12% trailing the S&P 500 TR astatine 14.83% and the adjacent radical astatine 13.06%. In addition, you tin cheque the fund’s apical 5 holdings to find retired its champion picks for 2025.

In its third-quarter 2025 capitalist letter, Mairs & Power Growth Fund highlighted stocks specified arsenic Cognex Corporation (NASDAQ:CGNX). Cognex Corporation (NASDAQ:CGNX) provides instrumentality imaginativeness products that seizure and analyse ocular accusation to automate manufacturing and organisation tasks. The one-month instrumentality of Cognex Corporation (NASDAQ:CGNX) was 2.32%, and its shares gained 0.53% of their worth implicit the past 52 weeks. On December 10, 2025, Cognex Corporation (NASDAQ:CGNX) banal closed astatine $37.91 per share, with a marketplace capitalization of $6.354 billion.

Mairs & Power Growth Fund stated the pursuing regarding Cognex Corporation (NASDAQ:CGNX) successful its 3rd 4th 2025 capitalist letter:

"During the 3rd quarter, we added 2 caller positions to the portfolio: Cognex Corporation (NASDAQ:CGNX) and Palo Alto Networks. Cognex is simply a planetary person successful instrumentality imaginativeness technology, serving logistics, automotive, packaging, user electronics, and semiconductor extremity markets. In our view, the tract of instrumentality imaginativeness appears to person progressed much successful the past six months than successful the anterior 2 decades, acknowledgment to AI. Historically, instrumentality imaginativeness systems functioned lone successful tightly controlled environments, wherever adjacent insignificant deviations could origin errors oregon shutdowns. AI has fundamentally changed that dynamic, enabling these systems to accommodate and run reliably successful real-world conditions. As a result, we expect instrumentality imaginativeness adoption to accelerate meaningfully successful the years ahead, and Cognex appears well-positioned astatine the forefront of this technological revolution. In addition, the institution stands to payment from the broader inclination of manufacturing onshoring successful the United States and the increasing request for mill automation."

Was Jim Cramer Right About Cognex Corporation (CGNX)?

Cognex Corporation (NASDAQ:CGNX) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 43 hedge money portfolios held Cognex Corporation (NASDAQ:CGNX) astatine the extremity of the 2nd quarter, up from 41 successful the erstwhile quarter. In the 3rd 4th of 2025, Cognex Corporation (NASDAQ:CGNX) reported revenue of $277 cardinal accrued by 18% year-over-year oregon by 16% connected a changeless currency basis. While we admit the imaginable of Cognex Corporation (NASDAQ:CGNX) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.