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Increased Demand Sent Howmet Aerospace (HWM) Higher in Q2

Fidelity Investments, an investment management company, recently released its “Fidelity Growth Strategies Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fidelity Growth Strategies Fund is a diversified domestic equity strategy with a focus on mid-cap growth investments. The fund focuses on investing in high-quality companies that demonstrate consistent growth and generate positive free cash flow. The fund’s Retail Class shares returned 22.74% in the second quarter, underperforming the 18.20% return of the benchmark Russell Midcap Growth Index. U.S. mid-cap growth stocks saw strong gains in Q2, bouncing back from a brief decline in early April following President Trump’s tariff announcement. In addition, you can check the fund’s top 5 holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Fidelity Growth Strategies Fund highlighted stocks such as Howmet Aerospace Inc. (NYSE:HWM). Howmet Aerospace Inc. (NYSE:HWM) provides advanced engineered solutions for the aerospace and transportation industries. The one-month return of Howmet Aerospace Inc. (NYSE:HWM) was 9.05%, and its shares gained 91.36% of their value over the last 52 weeks. On September 25, 2025, Howmet Aerospace Inc. (NYSE:HWM) stock closed at $189.85 per share, with a market capitalization of $76.53 billion.

Fidelity Growth Strategies Fund stated the following regarding Howmet Aerospace Inc. (NYSE:HWM) in its second quarter 2025 investor letter:

“An outsized position in Howmet Aerospace Inc. (NYSE:HWM) (+45%) helped, too. The maker of jet engine components has been riding a post-COVID recovery wave in air travel amid surging demand for its products. After achieving record financial results in 2024, in May the company reported more good news for Q1 of 2025, with record revenue, an all-time high profit and $125 million deployed for stock repurchases. We added substantially to the stake, and it was our second-biggest holding and overweight at the end of the quarter.”

Howmet Aerospace Inc. (NYSE:HWM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Howmet Aerospace Inc. (NYSE:HWM) at the end of the second quarter, which was 56 in the previous quarter. While we acknowledge the risk and potential of Howmet Aerospace Inc. (NYSE:HWM) 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 Howmet Aerospace Inc. (NYSE:HWM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Howmet Aerospace Inc. (NYSE:HWM) and shared the list of best defense stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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