QM · rank #16 · 2026-07-23
MKSI
NASDAQ · $23.06B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +324.63% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +12.7% |
| Profit margin Net profit margin, trailing 12 months. | +8.0% |
| Market cap (USD) Size filter: > $500M required. | $23.06B |
| Anchor (recent) Close on 2026-06-23 | $389.17 |
| Anchor (far) Close on 2025-06-23 | $91.65 |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
MKS Instruments is a global provider of enabling technologies—instruments, subsystems, and specialty chemistry—critical to semiconductor and advanced electronics manufacturing, with ~40% of revenue from recurring services and chemistry.
Rationale
The momentum_12_1 signal of 3.25 is reinforced by a concrete fundamental catalyst: Q1 2026 beat of $2.30 vs. $2.04 consensus, ~15% YoY revenue growth, and Q2 guidance stepping up to ~$1.20B, all driven by AI capex-linked semiconductor demand rather than pure sentiment rotation.
Material risks
- 1Cyclical semiconductor capex reversal—if AI infrastructure spending decelerates or customers defer tool purchases, MKSI's order flow and utilization rates compress rapidly given its exposure to equipment-cycle timing rather than purely recurring revenue.
- 2Leverage risk from the $2.5B+ secured term loans maturing 2029 leaves the balance sheet vulnerable to a revenue downturn, as debt service could constrain capital allocation and amplify earnings volatility precisely when the cycle turns.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.