ClearBridge Investments released its second-quarter 2025 investor letter, highlighting a 10.9% return for the S&P 500 and a 18.2% return for the Russell Midcap Growth Index. The strategy outperformed the benchmark, driven by strong performance in IT, industrials, and financials, including top five holdings.

Axon Enterprise, Inc. (NASDAQ: AXON) was featured in the investor letter, with shares gaining 95.99% over the last 52 weeks. The company manufactures conducted energy devices and closed at $750.67 per share on September 16, 2025, with a market cap of $58.93 billion. ClearBridge mentioned Axon as a dominant player with growth potential.

ClearBridge Growth Strategy noted the purchase of Axon Enterprise, Inc. (NASDAQ: AXON) in the second quarter, along with Howmet Aerospace, to complement existing defense holdings. Both companies are seen as having significant growth and margin expansion potential. Jim Cramer also highlighted Axon as a “New High Natural.”

In the second quarter, Axon Enterprise, Inc. (NASDAQ: AXON) saw a 33% year-over-year increase in revenue, reaching $669 million. While 62 hedge fund portfolios held the stock, some believe other AI stocks offer greater upside potential with less downside risk. Investors seeking undervalued AI stocks can explore further in a free report.

Read more at Yahoo Finance: Here’s Why ClearBridge Growth Strategy Added Axon Enterprise (AXON) in Q2