Renaissance Investment Management released its Q2 2025 investor letter, highlighting the volatility in the stock market due to an unexpected tariff announcement and subsequent recovery. The Russell 2000 Growth Index rallied in the second quarter, with the strategy also outperforming. Grid Dynamics Holdings, Inc. (NASDAQ: GDYN) was a key stock mentioned in the letter, with a one-month return of -5.28% and a market capitalization of $637.565 million on September 19, 2025.

The investor letter from Renaissance Investment Small Cap Growth Strategy noted that Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) faced challenges in performance due to macroeconomic uncertainties and increased investments in AI. Despite these challenges, the company is well-positioned to guide clients through digital transformations and AI adoption.

According to data, Grid Dynamics Holdings, Inc. (NASDAQ: GDYN) was not among the 30 most popular stocks among hedge funds in the second quarter of 2025. The company reported revenue of $101.1 million in Q2 2025, marking a 21.7% increase from the same period in 2024. While acknowledging Grid Dynamics’ potential, some AI stocks may offer greater upside potential with less downside risk.

Read more at Yahoo Finance: Here’s Why Grid Dynamics (GDYN) Detracted in Q2