Here's What Gives ATI (ATI) a Bright Future

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Small Cap Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, equity markets experienced one of their most turbulent periods in recent history. Small-cap stocks managed a rebound in the quarter, recovering from declines at the beginning of the year. Among style indexes, the Russell 2000® Growth Index led the way with an 11.96% gain, outpacing the Russell 2000® Value Index, which rose by 4.96%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, the Carillon Eagle Small Cap Growth Fund highlighted stocks such as ATI Inc. (NYSE:ATI). ATI Inc. (NYSE:ATI) is an industrial company that engages in the production and distribution of specialty materials and complex components. ATI Inc. (NYSE:ATI) stock fell 23.42% over the past month, while its shares rose 10.29% in value over the last 52 weeks. On August 19, 2025, ATI Inc. (NYSE:ATI) stock closed at $72.05 per share, with a market capitalization of $9.93 billion.

Carillon Eagle Small Cap Growth Fund stated the following regarding ATI Inc. (NYSE:ATI) in its second quarter 2025 investor letter:

"ATI Inc. (NYSE:ATI) produces specialty metals and alloys for a diversified set of industries, but most notably aerospace and defense. After a period of somewhat challenging operating results in the past year, the company put together a more impressive quarter that exceeded expectations across the board. We believe the company’s desirable positioning within an exceptionally tight aerospace specialty alloys market sets it up for a bright future if it can continue executing. We also believe ATI’s expo sure to newer-generation aircraft, an accelerating pricing environment, and newly announced contracts with a large OEM customer to which ATI historically has had little exposure all should provide for a positive backdrop going forward."

ATI Inc. (NYSE:ATI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held ATI Inc. (NYSE:ATI) at the end of the first quarter, which was 45 in the previous quarter. ATI Inc.'s (NYSE:ATI) second quarter revenue increased 4% year-over-year, to over $1.1 billion. While we acknowledge the potential of ATI Inc. (NYSE:ATI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered ATI Inc. (NYSE:ATI) and shared the list of best nickel stocks to buy according to hedge funds. 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.