Is Twist Bioscience Corporation (TWST) a Compelling Risk-Regarded Opportunity?

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 Twist Bioscience Corporation (NASDAQ:TWST). Twist Bioscience Corporation (NASDAQ:TWST) manufactures and distributes synthetic DNA-based products. The one-month return of Twist Bioscience Corporation (NASDAQ:TWST) was -20.34%, and its shares lost 37.05% of their value over the last 52 weeks. On November 14, 2025, Twist Bioscience Corporation (NASDAQ:TWST) stock closed at $26.87 per share, with a market capitalization of $1.58 billion.

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

"Outside of our software holdings, other Q3 detractors included Twist Bioscience Corporation (NASDAQ:TWST), MACOM Technology Solutions and Wingstop. Twist Bioscience is a life sciences company leveraging a proprietary silicon based writing platform with synthetic biology applications in drug discovery, diagnostics, agriculture and industrial materials. The company recently reported 18% revenue growth and improved gross margins, driven by strong demand in next-generation sequencing, which helped offset weaker synthetic biology product sales. We view Twist’s risk-reward profile as compelling and see the new Veracyte partnership as further validation of its platform, with potential to drive long-term upside. We used the recent pullback as an opportunity to add to our position."

Twist Bioscience Corporation (NASDAQ:TWST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 23 hedge fund portfolios held Twist Bioscience Corporation (NASDAQ:TWST) at the end of the second quarter, compared to 30 in the previous quarter. In the fourth quarter of fiscal 2025, Twist Bioscience Corporation (NASDAQ:TWST) reported revenue of $99 million, reflecting a growth of 17% year-over-year. While we acknowledge the potential of Twist Bioscience Corporation (NASDAQ:TWST) 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 Twist Bioscience Corporation (NASDAQ:TWST) and shared Conestoga Capital Advisors' views on the company. In addition, please check out our hedge fund investor letters Q3 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.