Improved Investor Sentiment Lifted MKS (MKSI) in Q3

Madison Investments, an investment advisor, released its “Madison Mid Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund (Class I) returned 1.9% compared to the 5.3% increase for the Russell Midcap Index. The Russell Mid Cap Index experienced significant growth in the third quarter of 2025. Information Technology led the performance both in the quarter and YTD. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Madison Mid Cap Fund highlighted stocks such as MKS Instruments, Inc. (NASDAQ:MKSI). MKS Instruments, Inc. (NASDAQ:MKSI) offers technology solutions to semiconductor manufacturing, electronics and packaging, and specialty industrial applications. The one-month return of MKS Inc. (NASDAQ:MKSI) was -3.11%, and its shares gained 20.51% of their value over the last 52 weeks. On November 20, 2025, MKS Inc. (NASDAQ:MKSI) stock closed at $138.49 per share, with a market capitalization of $9.302 billion.

Madison Mid Cap Fund stated the following regarding MKS Inc. (NASDAQ:MKSI) in its third quarter 2025 investor letter:

"Technology stocks continued their very strong performance in 3Q, and we participated with Amphenol, Arista Networks, and MKS Inc. (NASDAQ:MKSI) within our portfolio. MKS outperformed as investor sentiment continues to warm to an improving semiconductor cycle, as the company’s results once again reflected end markets picking up.

We trimmed two stocks during the quarter, Arista Networks and MKS. As noted above, both of these stocks have performed well recently. While we continue to see strong prospects for both businesses, we decided to trim back our holdings to a lower weighting, given these stocks’ higher valuations."

MKS Inc. (NASDAQ:MKSI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 33 hedge fund portfolios held MKS Inc. (NASDAQ:MKSI) at the end of the second quarter, up from 32 in the previous quarter.  MKS Inc. (NASDAQ:MKSI) reported revenue of $988 million in Q3 2025, reflecting an increase of 2% sequentially and 10% year-over-year. 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 covered MKS Inc. (NASDAQ:MKSI) and shared Madison Mid Cap Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.