Do You Believe in the Upside Potential of ATI (ATI)?

Scout Investments, Inc., an affiliate of Carillon Tower Advisers, recently released its third-quarter 2025 investor letter for “Carillon Scout Mid Cap Fund”. A copy of the letter can be downloaded here. The Russell Midcap Index posted positive returns in the quarter, fueled by strong corporate earnings, the continued momentum in artificial intelligence (AI) infrastructure, and the anticipation of the U.S. Federal Reserve’s (Fed) interest rates. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Carillon Scout Mid Cap Fund highlighted stocks such as ATI Inc. (NYSE:ATI). ATI Inc. (NYSE:ATI) is an industrial company that engages in the production and distribution of specialty materials and complex components. ATI Inc. (NYSE:ATI) stock gained 2.25% over the past month, and its shares rose 64.71% in value over the last 52 weeks. On December 02, 2025, ATI Inc. (NYSE:ATI) stock closed at $98.66 per share, with a market capitalization of $13.599 billion.

Carillon Scout Mid Cap Fund stated the following regarding ATI Inc. (NYSE:ATI) in its third quarter 2025 investor letter:

“ATI Inc. (NYSE:ATI) supplies specialty metals and components primarily for the aerospace and defense markets. ATI’s stock sold off following second-quarter results that did not meet elevated investor expectations and over fears that in the near term commercial aerospace producers have too much inventory of the metals and parts that ATI supplies. We continue to favor the company’s shift away from commodity products and into higher value-added offerings for aerospace, medical, electronics and specialty energy uses. We also see significant long-term aerospace growth as demand for travel increases and airlines modernize their fleets with more fuel-efficient planes.”

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) third quarter revenue increased 7% year-over-year, to over $1.1 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 Loomis Sayles Small/Mid Cap Growth 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.