Robust Demand Lifted Axon Enterprise (AXON) Shares to New Heights

Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter began with a historically poor start, but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Smid Cap Composite underperformed the Russell 2500 Growth Index in the quarter and returned 5.00% net-of-fees vs 11.31% for the index. Sector allocation effects were positive, while sector allocation effects were negative. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its second quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Axon Enterprise, Inc. (NASDAQ:AXON). Axon Enterprise, Inc. (NASDAQ:AXON) manufactures conducted energy devices (CEDs) under the TASER brand. The one-month return of Axon Enterprise, Inc. (NASDAQ:AXON) was -11.22%, and its shares gained 137.87% of their value over the last 52 weeks. On July 25, 2025, Axon Enterprise, Inc. (NASDAQ:AXON) stock closed at $735.01 per share, with a market capitalization of $57.221 billion.

Conestoga Capital Advisors stated the following regarding Axon Enterprise, Inc. (NASDAQ:AXON) in its second quarter 2025 investor letter:

“Axon Enterprise, Inc. (NASDAQ:AXON), who is leveraging technology to transform public safety, was a leader in three of the past four quarters. AXON continues to see robust demand for its products and services, from Tasers to body cameras to the software that powers many applications within public safety operations. AXON recently launched AI applications that save police officers a significant amount of time from mundane tasks. This product provides yet another leg to growth. AXON’s recent earnings report had strong revenue growth, which was the company’s fifth consecutive quarter of 30% or greater.”

Jim Cramer Notes Axon (AXON) is a “New High Natural”

A technician in a white coat testing an in-car system on a modern military vehicle.

Axon Enterprise, Inc. (NASDAQ:AXON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held Axon Enterprise, Inc. (NASDAQ:AXON) at the end of the first quarter compared to 64 in the previous quarter. In the first quarter, Axon Enterprise, Inc.’s (NASDAQ:AXON) revenue grew 31% year-over-year to $604 million. While we acknowledge the risk and potential of Axon Enterprise, Inc. (NASDAQ:AXON) 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 Axon Enterprise, Inc. (NASDAQ:AXON) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Axon Enterprise, Inc. (NASDAQ:AXON) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q2 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.