Carillon Tower Advisers recently shared its third-quarter 2025 investor letter for the Carillon Eagle Mid Cap Growth Fund. This letter highlighted the continued recovery in equity markets, driven by enthusiasm for artificial intelligence (AI), minimal inflationary concerns from tariffs, and expectations of further interest rate cuts from the U.S. Federal Reserve. Mid-cap stocks, in particular, showed resilience during this period, with the Russell Midcap Growth Index rising by 2.78% although it underperformed the Russell Midcap® Value Index, which increased by 6.16%.
In this letter, the fund spotlighted several stocks, including Monolithic Power Systems, Inc. (NASDAQ:MPWR), a provider of semiconductor-based power electronics solutions. On November 24, 2025, Monolithic Power’s shares closed at $892.97, reflecting a market capitalization of $42.78 billion. Over the past month, the stock experienced a decline of 17.80%, but it has gained 56.09% over the last year.
The investor letter noted that Monolithic Power Systems delivered strong earnings results, benefiting from diverse end markets. The company’s outlook for gaining market share in AI data center applications has improved significantly during the quarter. According to the report, “Monolithic Power Systems, Inc. (NASDAQ:MPWR), a semiconductor company specializing in power management, delivered solid earnings results driven by diversified end markets, while the company’s outlook for market share in artificial intelligence (AI) data center applications improved during the quarter.”
Despite this positive outlook, Monolithic Power Systems is not among the 30 Most Popular Stocks Among Hedge Funds. As of the end of the second quarter, 41 hedge fund portfolios included Monolithic Power Systems, a decrease from 47 in the previous quarter. Its revenue for Q3 2025 reached a record $737.2 million, marking a 10.9% increase from Q2 2025 and an 18.9% rise compared to Q3 2024.
While acknowledging the potential risks associated with investing in Monolithic Power Systems, the report suggested that other AI stocks might provide greater opportunities for higher returns in a shorter timeframe. Investors interested in AI stocks with significant upside potential were encouraged to explore additional reports on alternative investment opportunities.
In conclusion, Monolithic Power Systems contributed positively to the performance of the ClearBridge Mid Cap Growth Strategy during Q3 2025. For further insights, readers are directed to the hedge fund investor letters Q3 2025 page for more detailed analyses from leading investment firms.
