MKS Instruments (MKSI) Failed to Meet Investors’ Expectations

Madison Investments, an investment advisor, released its “Madison Mid Cap Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund (Class Y) returned 7.17% compared to the 9.21% increase for the Russell Midcap Index. The Fund returned 12.44%, in the year-to-date nine months, compared to 14.63% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Madison Mid Cap Fund highlighted stocks like MKS Instruments, Inc. (NASDAQ:MKSI) in the third quarter 2024 investor letter. MKS Instruments, Inc. (NASDAQ:MKSI) offers technology solutions to semiconductor manufacturing, electronics and packaging, and specialty industrial applications. The one-month return of MKS Instruments, Inc. (NASDAQ:MKSI) was -6.9%, and its shares gained 38.49% of their value over the last 52 weeks. On October 17, 2024, MKS Instruments, Inc. (NASDAQ:MKSI) stock closed at $102.54 per share with a market capitalization of $6.9 billion.

Madison Mid Cap Fund stated the following regarding MKS Instruments, Inc. (NASDAQ:MKSI) in its Q3 2024 investor letter:

“The bottom five detractors for the quarter were Dollar Tree, MKS Instruments, Inc. (NASDAQ:MKSI), PACCAR, Copart, and Amphenol. Shares in MKS Instruments, a maker of high-precision instruments and systems largely used by semiconductor manufacturers, have been volatile over the past year as investors try to forecast the bottoming of the semiconductor cycle. Optimism for a strong rebound early in the quarter quickly changed to pessimism as the hoped-for improvement didn’t materialize.”

A scientist working on a complex photonics instruments in a sterile laboratory setting.

MKS Instruments, Inc. (NASDAQ:MKSI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held MKS Instruments, Inc. (NASDAQ:MKSI) at the end of the second quarter which was 20 in the previous quarter. In the second quarter 2024, MKS Instruments, Inc.’s (NASDAQ:MKSI) revenue increased 2% sequentially to $887 million. While we acknowledge the potential of MKS Instruments, Inc. (NASDAQ:MKSI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed MKS Instruments, Inc. (NASDAQ:MKSI) and shared Madison Mid Cap Fund’s views on the company in the previous year’s quarter. In addition, please check out our hedge fund investor letters Q3 2024 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.