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What Makes Cummins (CMI) an Attractive Bet?

The London Company, an investment management company, released “The London Company Income Equity Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities continued their rally in the third quarter, driven by the Fed rate cut, solid corporate earnings, and enthusiasm around AI. In the third quarter, the portfolio appreciated 6.0% gross (5.8% net) compared to a 5.3% increase in the Russell 1000 Value Index. Positive stock section led the outperformance of the portfolio in the quarter, but was partially offset by sector exposure headwinds. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its third-quarter 2025 investor letter, The London Company Income Equity Strategy highlighted stocks such as Cummins Inc. (NYSE:CMI). Cummins Inc. (NYSE:CMI) provides various power solutions that operate through Engine, Distribution, Components, Power Systems, and Accelera segments. The one-month return of Cummins Inc. (NYSE:CMI) was -1.74%, and its shares gained 20.43% of their value over the last 52 weeks. On November 4, 2025, Cummins Inc. (NYSE:CMI) stock closed at $428.74 per share, with a market capitalization of $59.074 billion.

The London Company Income Equity Strategy stated the following regarding Cummins Inc. (NYSE:CMI) in its third quarter 2025 investor letter:

“Initiated: Cummins Inc. (NYSE:CMI) – The global leader in heavy- and medium-duty truck engines, CMI benefits from strong customer relationships and a large installed base driving high-margin, recurring aftermarket revenue. Diversification into Power Systems adds stability through the trucking downturn, while a strong balance sheet and disciplined capital allocation support investment and shareholder returns. Positioned for an eventual rebound in truck demand and global growth, CMI’s scale, emissions expertise, and service network provide durable advantages. With shares near mid-cycle earnings, the stock offers an attractive entry point into a resilient, market leading franchise.”

Cummins Inc. (NYSE:CMI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 59 hedge fund portfolios held Cummins Inc. (NYSE:CMI) at the end of the second quarter, up from 53 in the previous quarter. While we acknowledge the risk and potential of Cummins Inc. (NYSE:CMI) 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 Cummins Inc. (NYSE:CMI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Cummins Inc. (NYSE:CMI) and shared the list of best stocks to buy and hold for a lifetime. 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.

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
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  • 140 Metas
  • 84 Googles
  • 65 Microsofts
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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.
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