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Atai Capital Management’s Updates on AstroNova (ALOT)

Atai Capital Management, an investment management firm, recently released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned 3.1% in the fourth quarter net of all fees brining the full year returns to 7.7% net of all fees. This is compared to a 25% total return for the S&P 500, an 11.5% total return for the Russell 2000, and a 13.7% total return for the Russell Microcap for the year. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

In its fourth quarter 2024 investor letter, Atai Capital Management emphasized stocks such as AstroNova, Inc. (NASDAQ:ALOT). AstroNova, Inc. (NASDAQ:ALOT) develops and manufactures specialty printers and data acquisition and analysis systems. The one-month return of AstroNova, Inc. (NASDAQ:ALOT) was -3.00%, and its shares lost 31.24% of their value over the last 52 weeks. On February 18, 2025, AstroNova, Inc. (NASDAQ:ALOT) stock closed at $11.95 per share with a market capitalization of $89.97 million.

Atai Capital Management stated the following regarding AstroNova, Inc. (NASDAQ:ALOT) in its Q4 2024 investor letter:

“AstroNova, Inc. (NASDAQ:ALOT) has often been our largest position since inception and one that I have discussed at length in prior letters. As a recap, the thesis hinged on a return to normalized earnings in both their test and measurement segment (tied to narrowbody aircraft production) and their production identification segment (temporary ink/supplier/retrofit issues). Since our original purchase in January 2023, the business has performed as expected. At the end of their fiscal Q2-2024, the company (before Boeing strikes and shipment delays at PID, so a “semi-normal” quarter) was doing north of $21M in run-rate EBITDA – this compares to just $11M at the time of our original purchase. However, while the business has performed well, management’s poor capital allocation has cost us and taken away a good amount of our upside, for now at least.

In May 2024, AstroNova announced their $20M acquisition of MTEX, which we covered in our Q2- 2024 letter. At that time, it appeared that MTEX was a decent-to-great use of capital; it had high EBITDA margins (20%+), double-digit topline growth, some synergies, and perhaps most importantly, new technology that AstroNova’s legacy products could benefit from. Meanwhile, it also appeared they had paid around 10x 2024 EBITDA for the business, not bad…” (Click here to read the full text)

A technician editing complex data acquisition systems in an analytical workspace.

AstroNova, Inc. (NASDAQ:ALOT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 3 hedge fund portfolios held AstroNova, Inc. (NASDAQ:ALOT) at the end of the third quarter which was 3 in the previous quarter. In the fiscal third quarter of 2025, AstroNova, Inc. (NASDAQ:ALOT) reported $40.4 million in revenues, up 7.7% from the prior year’s quarter. While we acknowledge the potential of AstroNova, Inc. (NASDAQ:ALOT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article we discussed AstroNova, Inc. (NASDAQ:ALOT) and shared Atai Capital Management’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

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This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…