MKS (MKSI) Gains Momentum as Chipmakers Expand

MKS (MKSI) Gains Momentum as Chipmakers Expand

Wed, September 23, 2026 at 3:00 PM GMT+3 3 min read

• MKSI +1.34%

Madison Investments, an investment advisor, released its second-quarter 2026 investor letter for the "Madison Mid Cap Fund". You can download a copy of the letter here. U.S. stock market indices posted their strongest second-quarter performance since 2020, driven largely by enthusiasm for Artificial Intelligence. Nine of the ten largest companies in the Russell Midcap Index benefit directly from the AI data-center boom; one rose 257%, while the others gained between 17% and 136%. A small group of AI-related stocks has powered most of the index's year-to-date returns, reversing the broader market participation seen earlier this year. Although AI will reshape society and the economy, today's apparent winners may not remain so, and current valuations may prove unsustainable. Other risks include unpredictable federal policy, partisan gridlock, expanding deficits, inflation, higher interest rates, stretched consumer finances, and geopolitical volatility. The Class Y of the Fund returned 8.58% in the quarter compared to Russell Midcap's 13.83% return. The firm believes its Mid Cap portfolio combines strong long-term growth prospects with resilience amid potential challenges. Please review the Fund's top five holdings to gain insights into its key selections for 2026.

In its second-quarter 2026 investor letter, Madison Mid Cap Fund highlighted MKS Inc. (NASDAQ:MKSI) as a notable contributor. MKS Inc. (NASDAQ:MKSI) is a leading technology company that offers advanced foundational technology solutions to semiconductor manufacturing, electronics and packaging, and specialty industrial applications. On September 22, 2026, MKS Inc. (NASDAQ:MKSI) closed at $260.37 per share. Over the past month, MKS Inc. (NASDAQ:MKSI) declined 4.19%, but its shares are up 110.08% over the past year. MKS Inc. (NASDAQ:MKSI) has a market capitalization of $17.60 billion, and its stock has traded within a 52-week range of $119.62 to $447.62.

Madison Mid Cap Fund stated the following regarding MKS Inc. (NASDAQ:MKSI) in its Q2 2026 investor letter:

"The top five contributors for the quarter were MKS Inc. (NASDAQ:MKSI), Amphenol, Arista Networks, Bio Techne, and Waters. In a market highly focused on the stocks of AI beneficiaries, it's no surprise to see the three companies in the portfolio with the most AI infrastructure exposure lead the way this quarter. MKS (MKSI) is witnessing accelerating growth for its instruments and equipment used in the semiconductor manufacturing process, as supply of semiconductors, most notably memory chips, is tight and plans to increase capacity are in the works."

MKS Inc. (NASDAQ:MKSI) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 88 hedge fund portfolios held MKS Inc. (NASDAQ:MKSI) at the end of the second quarter, compared to 71 in the previous quarter. While we acknowledge the potential of MKS Inc. (NASDAQ:MKSI) 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 MKS Inc. (NASDAQ:MKSI) and noted that although the company achieved explosive revenue and profit growth with 86% EPS jump, expanding its capacity becoming increasingly expensive, raising concerns over future margin preassure. 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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This article is originally published at Insider Monkey.