MKS (MKSI): A Mission Critical Semiconductor Supplier Behind Next Gen Chip Making

4 weeks ago 10

Soumya Eswaran

Fri, July 31, 2026 astatine 9:35 AM CDT 4 min read

Spyglass Capital Management LLC, an concern absorption firm, released its second-quarter capitalist missive for "Spyglass Growth Strategy". A transcript of the missive tin beryllium downloaded here. Spyglass Growth Strategy appreciated 24.63% successful the 2nd quarter, importantly outperforming the Bloomberg Midcap Growth Index's 14.05% increase, the Bloomberg 2500 Growth Index's 19.01% gain, and the Bloomberg 500 Index's 15.61% instrumentality for the aforesaid period. The Strategy's show successful Q2 was a reversal from Q2 driven by easing geopolitical tensions, notably a US-Iran ceasefire, declining lipid prices, and a rebound successful bundle stocks aft early-year volatility. Small caps and maturation stocks outperformed, with Technology, Industrials, and Financials starring sectors. The portfolio's net maturation remains supra 40%, portion existent valuations bash not yet bespeak this performance. Despite caller portfolio success—85% of companies exceeding gross estimates—the wide portfolio faces aggregate compression with a flimsy antagonistic year-to-date return. However, the steadfast remains assured that fundamentals volition prevail implicit volatility, emphasizing that the market's short-term inefficiencies whitethorn contiguous opportunities for worth extraction. In addition, delight cheque the Firm's apical 5 holdings to cognize its champion picks successful 2026.

In its Q2 2026 capitalist letter, the Spyglass Growth Strategy highlighted MKS Inc. (NASDAQ:MKSI) arsenic a notable contributor. MKS Inc. (NASDAQ:MKSI) is simply a starring exertion institution that offers precocious foundational exertion solutions to semiconductor manufacturing, electronics and packaging, and specialty concern applications. On July 30, 2026, MKS Inc. (NASDAQ:MKSI) closed astatine $293.30 per share, reflecting a marketplace capitalization of $19.82 billion. MKS Inc. (NASDAQ:MKSI) posted a one-month instrumentality of -19.77%, portion its shares gained 216.23% implicit the past 52 weeks.

Spyglass Growth Strategy stated the pursuing regarding MKS Inc. (NASDAQ:MKSI) successful its Q2 2026 capitalist update:

"MKS Inc. (NASDAQ:MKSI)), a semiconductor superior instrumentality components supplier, was a caller presumption during the 2nd quarter. Semiconductor chips are produced connected wafer fabrication instrumentality ("WFE") which are sold by firms specified arsenic Applied Materials, Lam Research, Tokyo Electron, KLA, and ASML. This instrumentality successful crook relies connected vacuum, state delivery, RF power, and photonics subsystems which MKS supplies, and the Company holds the #1 oregon #2 stock presumption successful products touching astir 85% of WFE spend. We spot these arsenic sticky, specified-in positions that summation contented arsenic chips turn much complex.

Through a afloat cycle, our probe indicates MKS's semiconductor gross has historically tally astatine 2-2.5% of WFE spend, but the ratio compressed to astir 1.5% betwixt 2023-25 arsenic customers digested excess inventory, and not due to the fact that MKS mislaid share. We judge with inventories having present normalized, this strength is reverting backmost to humanities norms astatine the aforesaid infinitesimal AI is driving WFE walk from astir $110 cardinal successful 2025 toward what we expect volition beryllium $175 cardinal oregon much by 2027. We spot the displacement toward chiplets and high-bandwidth representation besides adding a 2nd maturation operator by inflecting request for precocious packaging, wherever we presumption MKS arsenic a person successful laser via drilling and electroplating chemistry. We deliberation the marketplace presently penalizes MKS for its NAND exposure, yet NAND superior spending remains adjacent trough levels aft the past cycle's overcapacity, truthful a betterment determination would correspond upside to our numbers alternatively than a hazard we are paying for..." (Click present to work the afloat text)

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