CDW (CDW) Fell as Market Yet to Accept is as an “AI Winner”

Wedgewood Partners, an investment management company, released its third-quarter 2025 investor letter. The letter is available for download here.  AI stocks remain the favorite topic of Wall Street in the third quarter. In the third quarter, Wedgewood Composite’s net return was 5.9% compared to the Standard & Poor’s 8.1%, the Russell 1000 Growth Index’s 10.5%, and the Russell 1000 Value Index’s 5.3% return for the same period. In addition, you can check the fund’s best 5 holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Wedgewood Partners highlighted stocks such as CDW Corporation (NASDAQ:CDW). CDW Corporation (NASDAQ:CDW) is an information technology (IT) solutions provider. The one-month return of CDW Corporation (NASDAQ:CDW) was -2.56%, and its shares lost 28.16% of their value over the last 52 weeks. On October 22, 2025, CDW Corporation (NASDAQ:CDW) stock closed at $156.36 per share, with a market capitalization of $20.493 billion.

Wedgewood Partners stated the following regarding CDW Corporation (NASDAQ:CDW) in its third quarter 2025 investor letter:

“CDW Corporation (NASDAQ:CDW) detracted from performance during the quarter as the market has yet to perceive CDW as an “AI winner.” The Company’s revenues grew +10% while adjusted operating income grew just +2%. CDW’s core small business customers are in the nascent stages of updating their IT stacks to be more AI-friendly, including moving many of them to the cloud, plus updating their network and edge devices, which have been neglected since the large buildout related to COVID-19 policies. Many small businesses are hesitant to hire dedicated IT professionals to help with their IT infrastructure. CDW is instrumental for these countless companies. As AI value propositions inevitably trickle down to small businesses, we expect CDW will play an important role for both customers and AI vendors in implementing these solutions.”

Is CDW Corporation (CDW) Mid-Cap IT Stock Outperforming The Market In 2025?

CDW Corporation (NASDAQ:CDW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held CDW Corporation (NASDAQ:CDW) at the end of the second quarter, which was 44 in the previous quarter. In the second quarter of 2025, CDW Corporation (NASDAQ:CDW) reported consolidated net sales of $6 billion, up 10% compared to Q2 2024. While we acknowledge the risk and potential of CDW Corporation (NASDAQ:CDW) 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 CDW Corporation (NASDAQ:CDW) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered CDW Corporation (NASDAQ:CDW) and shared Artisan Mid Cap Value Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.