The Comeback Story: BlackBerry Limited’s (BB) QNX and Growth Potential

The Comeback Story: BlackBerry Limited’s (BB) QNX and Growth Potential

Fri, September 4, 2026 at 5:38 PM GMT+3 3 min read

Meridian Funds, managed by ArrowMark Partners, released its second-quarter 2026 investor letter for "Meridian Contrarian Fund". The letter can be downloaded here. U.S. equity markets experienced a strong recovery in Q2 2026, driven by improved sentiment following de-escalation of geopolitical tensions and retreating energy prices. S&P 500 companies reported first-quarter profit growth above expectations, bolstering investor confidence. Significant gains in semiconductor and memory chip stocks were fueled by an accelerated AI investment cycle. The Russell 2500 Index saw a 20.26% return, notably propelled by the Information Technology sector, which accounted for nearly 50% of the index's gains. The Meridian Contrarian Fund returned 17.75%, underperforming both the Russell 2500 Index and the Russell 2500 Value Index. Looking ahead, the investment strategy remains focused on finding value in overlooked companies. Also, check the fund's top five holdings to see its best picks in 2026.

In its second-quarter 2026 investor letter, Meridian Contrarian Fund highlighted BlackBerry Limited (NYSE:BB). BlackBerry Limited (NYSE:BB) is a leading Canadian technology company that provides intelligent software and services to enterprises and governments. On September 03, 2026, BlackBerry Limited (NYSE:BB) closed at $7.70 per share. Over the past month, BlackBerry Limited (NYSE:BB) declined 14.25%, but its shares are up 98.45% over the past year. BlackBerry Limited (NYSE:BB) has a market capitalization of $4.51 billion, and its stock has traded within a 52-week range of $3.12 to $13.59.

Meridian Contrarian Fund stated the following regarding BlackBerry Limited (NYSE:BB) in its Q2 2026 investor letter:

"BlackBerry Limited (NYSE:BB) is a leader in embedded software, serving the automotive and secure communications end markets. The company's flagship QNX product is a foundational real-time operating system with broad adoption across the automotive, industrial, and medical device industries. A failed pivot away from its legacy smartphone dominance, combined with an unsuccessful cybersecurity acquisition, left BlackBerry deeply out of favor with the market. Our research identified QNX as a significantly underappreciated asset, with compelling growth potential tied to the rising software complexity of modern vehicles and connected devices. We initiated a position once we gained conviction that headwinds in the legacy businesses were meaningfully abating. BlackBerry delivered strong results during the quarter, serving as an important proof point of the company's operational improvement and highlighting its potential as a beneficiary of secular tailwinds in physical AI and robotics. We added to our position early in the quarter before trimming as the stock appreciated, consistent with our standard risk management discipline. We retain a meaningful position and believe that BlackBerry is in the early innings of a durable growth recovery."

BlackBerry Limited (NYSE:BB) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 31 hedge fund portfolios held BlackBerry Limited (NYSE:BB) at the end of the second quarter, up from 19 in the previous quarter. While we acknowledge the potential of BlackBerry Limited (NYSE:BB) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we discussed BlackBerry Limited (NYSE:BB) and shared a list of best performing agentic AI stocks to buy. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.