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Madison Large Cap Fund highlights Keysight as AI demand boosts tests
Madison Large Cap Fund said Keysight is benefiting from demand for AI-specific use cases in optical and electrical equipment, while noting its Q2 return of 8.4% versus a 15.2% S&P 500 gain.
Madison Investments’ Madison Large Cap Fund detailed in its Q2 2026 investor letter that the U.S. market’s best performance since 2020 was driven largely by a narrow group of AI-related stocks, a pattern the fund called concerning. The letter said it is reminiscent of the late 1990s internet bubble, warning that today’s winners may not remain so if the cycle shifts.
In that context, the fund singled out Keysight Technologies as a beneficiary of equipment growth tied to AI use cases. According to the letter, Keysight, an electronic design and test solutions provider for communications, electronics, and aerospace and defense, has reported strong quarterly results and an improved outlook.
The investor letter attributed Keysight’s momentum to strong core end markets and growing demand for AI-specific use cases in optical and electrical equipment. The shares closed at $319.45 on August 19, 2026, according to the article, and the fund’s letter discussion linked Keysight’s recent performance to that demand backdrop.
On performance, the Madison Large Cap Fund (class I) returned 8.4% in the second quarter of 2026, compared with a 15.2% increase in the S&P 500 Index. The letter also pointed to broader risks ahead, including a volatile federal administration, growing budget deficits, inflation, high interest rates, and strained consumer finances.
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