ATI (ATI) Surged on Increased Sales of Aerospace Products

Fidelity Investments, an investment management company, recently released its “Fidelity Growth Strategies Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fidelity Growth Strategy is a diversified equity strategy aimed at domestic midcap growth stocks. The approach focuses on identifying quality companies that deliver steady above-average growth and can outperform over time. The Fund (Retail Class shares) returned -3.44% in the quarter compared to the benchmark Russell Midcap® Growth Index’s -3.70% return. In Q4, the U.S. stock market continued its rapid rebound, driven by robust corporate fundamentals and strong spending on artificial intelligence. Mid-cap growth stocks underperformed, while large-cap stocks gained mainly from a narrow group of companies connected to generative AI, and small-cap equities benefited from interest rate sensitivity. As 2026 begins, the firm believes the business cycles in the U.S. and globally remain positive. The Strategy remains focused on companies possessing durable competitive advantages and growth potential. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Fidelity Growth Strategies Fund highlighted ATI Inc. (NYSE:ATI) as one of the leading contributors to the performance. ATI Inc. (NYSE:ATI) is an industrial company that manufactures specialty materials and complex components. ATI Inc. (NYSE:ATI) stock gained 7.51% over the past month, and its shares rose 100.76% in value over the last 52 weeks. On February 4, 2026,  ATI Inc. (NYSE:ATI) stock closed at $127.50 per share, with a market capitalization of $17.574 billion.

Fidelity Growth Strategies Fund stated the following regarding ATI Inc. (NYSE:ATI) in its fourth quarter 2025 investor letter:

“Among individual stocks, non-benchmark stakes in tech hardware maker Coherent (+71%) and capital goods firm ATI Inc. (NYSE:ATI) (+41%) were the top contributors. ATI operates in the medical and energy markets, but the firm primarily designs and manufactures components for aerospace and defense firms, which represent about two-thirds of its overall business. In late October, the company reported solid revenue growth and improved profitability for the third quarter, helped by sales in high-margin aerospace products. In its financial guidance, ATI projected strong earnings growth for 2025 and Q1 2026.”

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ATI Inc. (NYSE:ATI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 58 hedge fund portfolios held ATI Inc. (NYSE:ATI) at the end of the third quarter, which was 57 in the previous quarter. ATI Inc.’s (NYSE:ATI) 2025 revenue increased 5% year-over-year, to $4.6 billion. While we acknowledge the risk and potential of ATI Inc. (NYSE:ATI) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ATI Inc. (NYSE:ATI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered ATI Inc. (NYSE:ATI) and shared Carillon Scout Mid Cap Fund’s views on the company last quarter. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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