Keysight: Innovating for Tomorrow's Technological Advancement
Madison Large Cap Fund's Q4 2025 Review: Market Dynamics and Key Performers
Madison Investments' Q4 2025 investor letter for its Large Cap Fund provides a comprehensive overview of market trends and standout performers. The S&P 500 demonstrated a 2.65% return for the quarter, culminating in a 17.9% annual growth for 2025. Over the last three years, the index saw an impressive average annual growth exceeding 21%. While market leadership was largely driven by High Beta and Momentum factors, the fourth quarter witnessed a slight improvement in previously underperforming sectors such as Healthcare, Financials, and Consumer Discretionary. Despite this, mega-cap technology firms remained the dominant force behind the S&P 500's overall ascent, reflecting a high concentration of stock performance. Within this dynamic environment, the Madison Large Cap Fund (Class I) outpaced the S&P 500 Index, achieving a 3.43% appreciation.
Keysight Technologies: A Market Leader's Strong Comeback
Keysight Technologies, Inc. (NYSE: KEYS), a preeminent provider of electronic design and test solutions, was prominently featured in the Madison Large Cap Fund's Q4 2025 investor letter. As of February 24, 2026, KEYS shares closed at $301.48, marking a 36.11% return over the past month and an impressive 88.00% gain over the last 52 weeks. The company boasts a substantial market capitalization of $51.799 billion, underscoring its significant presence in the industry.
Drivers of Keysight's Enhanced Performance and Future Prospects
The Madison Large Cap Fund specifically commended Keysight Technologies, Inc. (NYSE: KEYS) in its investor letter, noting its exceptional contribution to the fund's performance. Keysight, alongside Alphabet, Parker-Hannifin, Danaher, and PACCAR, was identified as a top five contributor for the quarter. The fund highlighted Keysight's strong quarterly financial results and an optimistic future outlook. Following a period where its end markets experienced a slowdown, Keysight is now confidently re-entering a growth phase, driven by innovation and strategic market positioning.
Keysight's Position in the Investment Landscape and AI Stock Alternatives
Despite its robust performance, Keysight Technologies, Inc. (NYSE: KEYS) is not currently among the 30 most popular stocks favored by hedge funds. Data indicates that 51 hedge fund portfolios held Keysight shares at the close of Q4, an increase from 44 in the preceding quarter. While acknowledging Keysight's investment potential, some analysts suggest that specific AI stocks might offer superior upside potential with reduced downside risks. Investors seeking highly undervalued AI stocks that could also benefit from current economic trends, such as Trump-era tariffs and the onshoring movement, are encouraged to explore specialized reports on leading short-term AI investment opportunities.