Should You Invest in Samsara (IOT)?

Brown Advisory, an investment management company, released its “Brown Advisory Large-Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy returned -0.88% (net) during the third quarter, underperforming the benchmark, the Russell 1000 Growth Index. Even though the portfolio has significant exposure to AI, its underweight to the most speculative momentum-driven parts of the trade was a headwind to performance. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Brown Advisory Large-Cap Growth Strategy highlighted stocks such as Samsara Inc. (NYSE:IOT). Samsara Inc. (NYSE:IOT) offers solutions to connect physical operations data to its connected operations cloud. The one-month return of Samsara Inc. (NYSE:IOT) was 2.39%, and its shares lost 29.24% of their value over the last 52 weeks.  On December 03, 2025, Samsara Inc. (NYSE:IOT) stock closed at $39.01 per share, with a market capitalization of $22.377 billion.

Brown Advisory Large-Cap Growth Strategy stated the following regarding Samsara Inc. (NYSE:IOT) in its third quarter 2025 investor letter:

"Samsara Inc. (NYSE:IOT) is one of the leading providers of connected operations solutions for the physical economy, serving a large and fragmented market with significant potential for technological modernization. As one of the only modern platforms purpose-built for industries such as logistics, manufacturing, and field services, Samsara Inc. is uniquely positioned to drive innovation in sectors that have historically lacked digital infrastructure. We believe the company is entering a compelling phase of product expansion, with meaningful opportunities to broaden its addressable market. With strong execution, a differentiated offering, and increasing demand for operational efficiency and real-time data, we believe Samsara Inc. is well positioned to deliver sustained growth as it continues to modernize the physical world through products like AI-powered safety tools, connected wearables, and predictive maintenance solutions."

Samsara Inc. (NYSE:IOT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Samsara Inc. (NYSE:IOT) at the end of the third quarter, which was 41 in the previous quarter. While we acknowledge the potential of Samsara Inc. (NYSE:IOT) 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 Samsara Inc. (NYSE:IOT) and shared a bullish thesis 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.