Core Insights - Artisan Partners' "Artisan Mid Cap Fund" reported strong performance in Q3 2025, with returns of 8.80% for both Investor Class and Advisor Class funds, and 8.83% for Institutional Class, significantly outperforming the Russell Midcap Growth Index's 2.78% return [1] - The fund's outperformance was primarily driven by holdings in the health care sector, indicating a strategic focus on sectors with robust growth potential [1] Fund Performance - The global equity markets showed strength in Q3 2025, ending the period with double-digit year-to-date gains [1] - The Artisan Mid Cap Fund's returns for Q3 2025 were as follows: Investor Class fund ARTMX at 8.80%, Advisor Class fund APDMX at 8.80%, and Institutional Class fund APHMX at 8.83% [1] Company Focus: Arista Networks, Inc. - Arista Networks, Inc. (NYSE:ANET) is highlighted as a key holding, with a one-month return of -2.24% but a significant 40.78% gain over the last 52 weeks, closing at $143.38 per share with a market capitalization of $180.209 billion on October 15, 2025 [2] - The company is recognized for its leadership in cloud networking equipment for data centers and is gaining market share in AI cloud environments due to its scalable Ethernet solutions and advanced software platform [3] Investment Strategy - Artisan Mid Cap Fund made notable trims in its position in Arista Networks, Snowflake, and Tyler Technologies during the quarter, citing valuation considerations and market capitalization growth beyond mid-cap mandates [3] - Despite the potential of Arista Networks as an investment, some analysts suggest that other AI stocks may offer greater upside potential with less downside risk [4]

Group 1: Nvidia's Financial Performance - Nvidia's revenue increased by 56% year over year to $46.7 billion in its fiscal second quarter, driven by a 56% surge in AI-driven data center revenue to $41.1 billion, which constituted 88% of total revenue [1] - The adjusted net income for the quarter rose by 52% to $25.8 billion, resulting in a 54% increase in earnings per share (EPS) to $1.05 [5] - Revenue from gaming, professional visualization, and auto platforms grew by 49%, 32%, and 69% respectively [1] Group 2: Market Position and Growth Drivers - Nvidia's GPUs are recognized as the gold standard for training AI models and deploying AI applications, leading to significant revenue and earnings growth since the rise of generative AI [2] - The company's strong stock performance over the last decade reflects an agile management team and a successful business model, with a $1,000 investment turning into $312,610 [3][5] Group 3: Competitive Landscape - Advanced Micro Devices (AMD) competes with Nvidia in the discrete GPU market but lags in the AI-driven data center GPU market [6] - AMD's revenue grew by 32% year over year to $7.69 billion, with data center revenue increasing by 14% to $3.2 billion, but faced challenges due to U.S. export controls [7] - Arista Networks, another competitor, reported a 30% year-over-year revenue increase to $2.2 billion, benefiting from the rapid adoption of AI [11]

Investment Recommendation (Micron - MU) - Micron is considered a compelling AI long-term investment due to its high bandwidth memory (HBM) chips, crucial for AI workloads [6] - Micron's valuation levels are helping make it a "screaming buy" [3] - Investors can buy Micron trading 20% below its June 2024 peaks and 30% below its average Zach's price target [3][9] - Analysts are calling for 47% revenue growth in fiscal year 2025 to nearly $37 billion, and another 34% growth the following year to nearly $50 billion [16] - Analysts are calling for roughly 518% growth on the bottom line to go from $130 million to $840 million, and another 62% growth the following year to $1350 million [17] Company Performance & Industry Position (Micron - MU) - Micron raised its Q4 guidance in mid-August, benefiting from the hyperscale data center boom [2][7] - Micron's growth in key areas has seen the semiconductor stock climb 1500% in the last 15 years, crushing the Zach tech sector which is up 675% [5][8] - Micron is working directly with AI chip powerhouse Nvidia and Nvidia's closest rival AMD [6] - Micron CEO has stated that AI will drive record demand for memory chips [6] - Micron is expanding its manufacturing footprint in the US as part of a larger reshoring boom [6] - Micron is a vertically integrated semiconductor company, designing, manufacturing, and testing all its chips in-house [6] Investment Recommendation (Arista Networks - AET) - Arista Networks is a pioneer and leader in cloud and AI networking [20] - Arista Networks is currently a Zach's Rank number two rated stock [22] - Any dip in Arista Networks shares is considered a good opportunity to buy given its role in the AI revolution [25] Company Performance (Arista Networks - AET) - Arista Networks' revenue surged 30%, and adjusted net income surged 38% year-over-year [22] - Arista Networks provides high-speed networking gear, switches, and routers for data centers [23] - Arista Networks' main customers are Microsoft and Meta Platforms [23] - Arista Networks raised its full-year guidance after reporting strong results [24]

Group 1 - Broader equity markets reached all-time highs, driven by NVIDIA's strong quarterly performance and a healthy economy, with NVIDIA reporting a 56% revenue growth [1] - The U.S. GDP grew at an annualized rate of 3.3% for the April-to-June period, surpassing expectations and indicating robust economic strength [1] Group 2 - The core personal consumption expenditures price index for July was recorded at 2.9%, slightly higher than June, but not expected to hinder potential interest rate cuts by the Federal Reserve [2] Group 3 - Investors are advised to focus on "cash cow" stocks with high returns, emphasizing the importance of return on equity (ROE) as a key metric for identifying financially healthy companies [3][4] - High ROE indicates effective reinvestment of cash at high returns, helping to distinguish between profit-generating companies and those that are not [5] Group 4 - Screening parameters for identifying cash-rich stocks include cash flow greater than $1 billion, ROE above industry average, price/cash flow ratio lower than industry, return on assets (ROA) greater than industry, and strong historical EPS growth [6][7] - Stocks that qualified based on these criteria include NVIDIA, Arista Networks, TE Connectivity, Corning, Banco Bilbao, and AppLovin [8] Group 5 - Arista Networks specializes in cloud networking solutions and has a long-term earnings growth expectation of 16.6% with a trailing four-quarter earnings surprise of 12.8% [9][10] - TE Connectivity focuses on connectivity and sensor solutions across various industries, with a long-term earnings growth expectation of 9.8% and a trailing four-quarter earnings surprise of 4.9% [11][12] - Corning, known for its advanced glass technologies, has a long-term earnings growth expectation of 18.2% and a trailing four-quarter earnings surprise of 4.7% [12][13] - Banco Bilbao provides a range of banking services and has a long-term earnings growth expectation of 6.9% with a trailing four-quarter earnings surprise of 7.4% [13][14] - AppLovin offers software solutions for advertisers and has a long-term earnings growth expectation of 20% with a trailing four-quarter earnings surprise of 22.4% [14][15]

Core Insights - Three stocks with strong momentum and buy rank are highlighted for investors: TAT Technologies Ltd., Lumentum Holdings Inc., and Arista Networks, Inc. [1][2][3] Group 1: TAT Technologies Ltd. (TATT) - TAT Technologies is a provider of solutions and services to the aerospace and defense industries [1] - The Zacks Consensus Estimate for TAT's current year earnings increased by 10.7% over the last 60 days [1] - TAT's shares gained 21.9% over the last three months, outperforming the S&P 500's 11.4% increase [2] - The company has a Momentum Score of A [2] Group 2: Lumentum Holdings Inc. (LITE) - Lumentum is involved in optical and photonic products [2] - The Zacks Consensus Estimate for Lumentum's current year earnings increased by 20.5% over the last 60 days [2] - Lumentum's shares surged by 57.5% over the last three months, significantly outperforming the S&P 500's 11.4% increase [2] - The company also possesses a Momentum Score of A [2] Group 3: Arista Networks, Inc. (ANET) - Arista Networks specializes in cloud networking solutions [3] - The Zacks Consensus Estimate for Arista's current year earnings increased by 9.8% over the last 60 days [3] - Arista's shares rose by 46.1% over the last three months, again outperforming the S&P 500's 11.4% increase [3] - The company has a Momentum Score of A [3]

Group 1 - First Financial Bancorp. (FFBC) has seen a 6.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Lumentum Holdings Inc. (LITE) has experienced a 20.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Arista Networks, Inc. (ANET) has seen a 9.8% increase in the Zacks Consensus Estimate for its next year earnings over the last 60 days [2] - Bar Harbor Bankshares (BHB) has experienced a 7.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - TAT Technologies Ltd. (TATT) has seen a 10.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Core Insights - Bandwidth, Inc. (BAND) reported strong second-quarter 2025 results, with both revenue and earnings exceeding Zacks Consensus Estimates [1][10] - The company's growth is driven by increasing reliance on its cloud-based communication platform by enterprises, with a strategic focus on large enterprises and becoming a leading global CPaaS provider [2] Financial Performance - For Q2 2025, Bandwidth reported a GAAP net loss of $4.9 million, or a loss of 16 cents per share, an improvement from a net loss of $5 million, or 17 cents per share, in the prior-year quarter [3] - Non-GAAP net income for the quarter was $12.1 million, or 38 cents per share, compared to $9 million, or 29 cents per share, in the prior-year quarter, beating the Zacks Consensus Estimate of 32 cents [4] - Quarterly revenues increased to $180 million from $174 million in the prior-year quarter, driven by high demand for digital engagement and strong messaging services across various sectors [5] Operational Metrics - Non-GAAP gross margin for the quarter was 58%, up from 56% a year ago, attributed to a favorable product mix and operational efficiency [6] - Adjusted EBITDA was $22 million, exceeding guidance and up from $19 million in the prior-year period [6] Cash Flow and Liquidity - Net cash from operating activities for the June quarter was $31.7 million, compared to $24.4 million in the prior year [7] - As of June 30, 2025, cash and cash equivalents stood at $60.1 million, with convertible senior notes totaling $247 million [7] Future Guidance - Bandwidth anticipates continued growth, projecting revenues for 2025 in the range of $745-760 million, indicating a year-over-year growth of 9-11% [8] - For Q3 2025, revenues are expected to be between $189 million and $191 million, with adjusted EBITDA anticipated in the range of $19 million to $21 million [8]

Market Overview - The S&P 500 has reached an all-time high of 6,173.07 points, up 0.5% on Friday, surpassing its previous record of 6,147.43 points [3][8] - The index has rebounded over 20% from its April lows and has gained nearly 5% year to date, driven by easing geopolitical tensions and hopes for Federal Reserve rate cuts [6][8] Geopolitical and Economic Factors - Geopolitical tensions, particularly between Iran and Israel, have eased, contributing to investor confidence [6] - The Federal Reserve is expected to resume rate cuts, with officials hinting at a potential cut as early as July, which could further support the S&P 500 rally [7] Company Highlights Adobe Inc. (ADBE) - Adobe is a leading software company with an expected earnings growth rate of 11.9% for the current year, and its earnings estimate has improved by 1.2% over the past 60 days [9] - ADBE currently holds a Zacks Rank of 2 (Buy) [9] Altria Group, Inc. (MO) - Altria is adapting to industry changes by expanding into the smokeless category, with an expected earnings growth rate of 4.9% for the current year and a 1.7% improvement in earnings estimates over the past 60 days [10] - MO also holds a Zacks Rank of 2 [10] Arista Networks, Inc. (ANET) - Arista provides cloud networking solutions and has an expected earnings growth rate of 13.2% for the current year, with a 4% improvement in earnings estimates over the past 60 days [12] - ANET is currently rated as a Zacks Rank 2 [12] Atmos Energy Corporation (ATO) - Atmos Energy is involved in regulated natural gas distribution and storage, serving approximately 3.3 million customers [13] - The company has an expected earnings growth rate of 6% for the current year, with a 0.6% improvement in earnings estimates over the last 60 days [14] - ATO also carries a Zacks Rank of 2 [14]

Market Overview - The S&P 500 returned to positive territory in 2025, erasing all its losses, primarily driven by technology stocks, marking the fastest recovery since 1982 [1] - The market's recovery followed a significant drop due to President Trump's tariff plans, with the S&P 500 recovering a 15% year-to-date loss in less than six weeks [1] Economic Factors - A 90-day U.S.-China trade truce and strong earnings from tech giants have renewed market optimism [2] - April inflation data showed a decrease to 2.3% year-over-year, the lowest since February 2021, supporting the case for easing by the Federal Reserve [5] - The U.S. labor market added 177,000 jobs in April, with the unemployment rate steady at 4.2%, indicating economic resilience [6] SPDR S&P 500 ETF Trust (SPY) Insights - SPY holds 503 stocks, with no single stock exceeding 6.7% of its assets, ensuring a balanced portfolio [7] - The ETF has an AUM of $576.1 billion and charges 9 basis points in fees per year, with an average daily trading volume of 66 million shares [8] Leading Technology Stocks - Microchip Technology Inc. (MCHP) saw a stock increase of nearly 60% in a month, with a Zacks Rank of 3 [9] - Seagate Technology (STX) experienced a 44% stock jump, with a solid earnings estimate revision of 30 cents for the fiscal year ending June 2025, and a growth rate of 510% [10] - Palantir Technologies Inc. (PLTR) rose about 40% in a month, with an estimated growth of 43.9% and a Zacks Rank of 3 [11] - Micron Technology (MU) increased over 37% in a month, with an estimated earnings growth of 433.1% and a Zacks Rank of 3 [12] - Arista Networks Inc. (ANET) gained about 37% in a month, with an estimated growth rate of 12.78% and a Zacks Rank of 2 [13] Market Outlook - Wall Street strategists are becoming increasingly bullish on the S&P 500, with Goldman Sachs raising its year-end target to 6,100 and Yardeni Research lifting its forecast to 6,500, indicating an additional 11% potential gain [4]

Core Viewpoint - The article discusses the contrasting outlooks for two prominent stock-split companies: O'Reilly Automotive, which is seen as a strong buy, and Arista Networks, which is viewed as potentially overvalued and risky. Group 1: Stock-Split Overview - Stock splits allow companies to adjust their share price and outstanding share count without affecting market capitalization or operating performance [3] - Historically, companies conducting forward splits have averaged a 25.4% return in the 12 months following the announcement, significantly outperforming the S&P 500 [5] Group 2: O'Reilly Automotive - O'Reilly Automotive is the first high-profile company to announce a forward split in 2025, with a planned 15-for-1 split reducing its share price from nearly $1,400 to around $90 [7][8] - The average age of vehicles in the U.S. has reached an all-time high of 12.6 years, increasing demand for O'Reilly's auto parts [9] - O'Reilly's business model is recession-resistant, as consumers are likely to keep their vehicles longer during economic downturns [10] - The company has an effective hub-and-spoke distribution model, allowing for quick delivery of a wide range of products [11] - O'Reilly has repurchased $25.94 billion worth of its common stock since 2011, retiring 59.4% of its outstanding shares, which boosts earnings per share [12] Group 3: Arista Networks - Arista Networks announced a 4-for-1 forward split, reducing its share price from nearly $422 to around $105 [16] - The company has experienced sustained sales growth, with service revenue increasing by 35% in 2024 to $1.12 billion [18] - Concerns exist regarding the potential bursting of the AI bubble, as many businesses have not yet optimized their AI solutions [19] - Macro factors, including a projected 2.4% decline in U.S. GDP, could negatively impact demand for Arista's products [20] - Despite a decline from its peak, Arista's price-to-sales multiple remains high at over 14, indicating potential for further downside [21]