What Makes Cognex Corporation (CGNX) an Investment Bet?

Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equities continue to rally in the third quarter, the period with double-digit YTD gains. Major US indices like Russell 1000®, Russell Midcap®, and Russell 2000® reached record highs in the period. In the quarter, the fund’s Investor Class fund ARTSX returned 8.69%, Advisor Class fund APDSX posted a return of 8.75%, and Institutional Class fund APHSX returned 8.73%, compared to a return of 12.19% for the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its third-quarter 2025 investor letter, Artisan Small Cap Fund highlighted stocks such as Cognex Corporation (NASDAQ:CGNX). Cognex Corporation (NASDAQ:CGNX) provides machine vision products that capture and analyze visual information to automate manufacturing and distribution tasks. The one-month return of Cognex Corporation (NASDAQ:CGNX) was -25.46%, and its shares lost 8.35% of their value over the last 52 weeks. On November 17, 2025, Cognex Corporation (NASDAQ:CGNX) stock closed at $35.98 per share, with a market capitalization of $6.03 billion.

Artisan Small Cap Fund stated the following regarding Cognex Corporation (NASDAQ:CGNX) in its third quarter 2025 investor letter:

“During the quarter, we initiated new GardenSM positions in Cognex Corporation (NASDAQ:CGNX), Waystar and Ollie’s Bargain Outlet. Cognex, a leading manufacturer of machine vision systems, automates and optimizes processes across manufacturing and logistics. We reinitiated a position in the company during the quarter. Our investment thesis is supported by three key drivers: a new management team focused on aligning products with enhanced customer service and disciplined cost control; advancements in AI that reduce installation and operational costs, enabling access to small and mid-sized customers that were previously out of reach; and potential upside from a cyclical recovery in Cognex’s end markets, which could further strengthen the profit cycle.”

Was Jim Cramer Right About Cognex Corporation (CGNX)?

Cognex Corporation (NASDAQ:CGNX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 41 hedge fund portfolios held Cognex Corporation (NASDAQ:CGNX) at the end of the second quarter, up from 40 in the previous quarter.  In the third quarter of 2025, Cognex Corporation (NASDAQ:CGNX) reported revenue of $277 million increased by 18% year-over-year or by 16% on a constant currency basis. While we acknowledge the risk and potential of Cognex Corporation (NASDAQ:CGNX) 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 Cognex Corporation (NASDAQ:CGNX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Cognex Corporation (NASDAQ:CGNX) and shared the list of stocks crushing with whopping double-digit gains. In addition, please check out our hedge fund investor letters Q3 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.