Kulicke & Soffa Industries (KLIC) Fell as Results and Guidance Fell Short of Expectations

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 11.28% (gross) and 11.02% (net), compared to the Russell 2000 Growth Index by 11.97%. Equities posted double-digit returns in the second quarter as global economic activity measures lifted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, TimesSquare Capital Small Cap Growth Strategy highlighted stocks such as Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC). Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) manufactures and distributes capital equipment and tools used to assemble semiconductor devices. The one-month return of Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) was 5.52%, and its shares lost 4.33% of their value over the last 52 weeks. On September 12, 2025, Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) stock closed at $38.62 per share, with a market capitalization of $2.014 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) in its second quarter 2025 investor letter:

"Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that are growing their shares of corporate IT budgets. Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) designs and manufactures electronics assembly solutions. The combination of a disappointing second quarter and lower third quarter guidance led us to exit the position. Its shares were down -4% while held in the quarter."

Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) at the end of the second quarter, compared 23 in the previous quarter. While we acknowledge the potential of Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) 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 covered Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) and shared the list of top dividend stocks according to dividend yields. In addition, please check out our hedge fund investor letters Q2 2025 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.