Competitive PressuresThere are still more fundamental hurdles longer term that need to be considered - things like rising competition, AI making PC-based vision a more viable alternative, overall market penetration at the high end of the market.
Market CompetitionNear-term risks, including reliance on large logistics customers and intensifying competition from China, limit conviction for multiple expansion at the current valuation.
Valuation ConcernsCognex trades at a premium to U.S. industrial technology peers, with a valuation that already embeds a measure of AI-driven optimism, presenting ongoing headwinds.