Do You Believe in the Upside Potential of Veracyte (VCYT)

Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equity markets continued their strength in the third quarter, ending the period with double-digit year-to-date gains. In the quarter, the fund’s Investor Class fund ARTMX returned 8.80%, Advisor Class fund APDMX posted a return of 8.80%, and Institutional Class fund APHMX returned 8.83%, compared to a 2.78% return for the Russell Midcap Growth Index. The significant outperformance was led by holdings in the health care sector. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks such as Veracyte, Inc. (NASDAQ:VCYT). Incorporated in 2006, Veracyte, Inc. (NASDAQ:VCYT) is a diagnostics company. The one-month return of Veracyte, Inc. (NASDAQ:VCYT) was 4.66%, and its shares gained 1.37% of their value over the last 52 weeks. On October 15, 2025, Veracyte, Inc. (NASDAQ:VCYT) stock closed at $34.78 per share, with a market capitalization of $2.736 billion.

Artisan Mid Cap Fund stated the following regarding Veracyte, Inc. (NASDAQ:VCYT) in its third quarter 2025 investor letter:

We also added to RBC Bearings, Reddit and Veracyte, Inc. (NASDAQ:VCYT) during the quarter. Veracyte is a molecular diagnostics company that provides noninvasive cancer tests, helping physicians make more informed decisions and avoid unnecessary surgeries. Its three approved and reimbursed tests are Decipher® (prostate cancer), Afirma® (thyroid cancer) and Prosigna® (breast cancer). Veracyte reported 14% year over-year revenue growth to $130 million, driven by strong sales of Decipher® and Afirma®. This growth is fueling notable margin expansion and solid cash flows—a rarity among small- and mid-cap diagnostics companies. The company is working to expand Prosigna® in the US, advance its Percepta® Nasal Swab test for lung cancer risk assessment, and launch its Minimal Residual Disease platform in 2026 to detect residual cancer following treatment.

Veracyte (VCYT) Introduces AI-Powered Cancer Detection - Faster and More Accurate Than Ever!

Veracyte, Inc. (NASDAQ:VCYT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 29 hedge fund portfolios held Veracyte, Inc. (NASDAQ:VCYT) at the end of the second quarter, up from 24 in the previous quarter. Veracyte, Inc. (NASDAQ:VCYT) reported 14% revenue growth year-over-year in the second quarter of 2025, with total revenue of $130 million. While we acknowledge the risk and potential of Veracyte, Inc. (NASDAQ:VCYT) 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 Veracyte, Inc. (NASDAQ:VCYT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Veracyte, Inc. (NASDAQ:VCYT) and shared Meridian Small 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.