The Mairs & Power Growth Fund has increased its position in Cognex Corporation (CGNX), citing strong revenue growth, expanding AI integration in industrial automation, and rising demand for machine vision systems. The move underscores growing confidence in the company’s long-term trajectory.
- Mairs & Power Growth Fund increased stake in Cognex (CGNX) by 28% in Q4 2024
- Cognex revenue reached $427 million in FY2024, up 12% YoY
- Non-GAAP operating margin expanded to 31.4% in FY2024
- VisionPro AI platform deployed in over 1,200 production lines
- Service revenue grew 23% year-over-year
- Fund now holds 4.2% of CGNX outstanding shares
The Mairs & Power Growth Fund has significantly increased its holdings in Cognex Corporation (CGNX), a leading provider of machine vision systems and industrial automation solutions. The fund's updated disclosure shows a 28% rise in its stake during the fourth quarter of 2024, now representing approximately 4.2% of the company’s outstanding shares. This strategic shift reflects the fund’s focus on technology firms with scalable intellectual property and recurring revenue models in high-growth sectors. Cognex reported revenue of $427 million for the fiscal year ended September 30, 2024, marking a 12% year-over-year increase, driven by demand across automotive manufacturing, electronics assembly, and logistics automation. The company also achieved a non-GAAP operating margin of 31.4%, up from 28.9% in the prior year, signaling improved cost discipline and product mix advantages. These performance metrics align with the fund’s investment criteria, which prioritize sustainable profitability and innovation-led growth. The fund’s decision follows a broader trend of institutional investors targeting AI-enabled industrial technologies. Cognex’s recent launch of the VisionPro AI platform—designed to enhance defect detection and process optimization in real time—has attracted interest from major OEMs and Tier 1 suppliers. The platform has already been deployed in over 1,200 production lines globally, contributing to a 23% increase in service revenue during the period. Market participants note that the fund’s increased exposure to CGNX could signal a shift in sentiment toward capital equipment and automation firms poised to benefit from global manufacturing reshoring and semiconductor supply chain modernization. The move may also influence peer valuation, with analysts tracking similar tech-focused funds for potential follow-on activity.