Benson Investment Adds $5.5 Million Keysight Stake Amid AI Hardware Momentum

Benson Investment Management Company has established a new position in Keysight Technologies (KEYS), acquiring 31,240 shares valued at $5.5 million as of September 30, representing approximately 2% of its 13F reportable AUM. This strategic investment diversifies Benson's portfolio, which is otherwise concentrated in mega-cap tech, by adding exposure to industrial technology and the hardware infrastructure enabling AI expansion. Keysight recently reported robust Q3 2025 results, with revenue up 11% year-over-year and raised full-year guidance, demonstrating strong performance driven by commercial communications and defense, despite broader industrial slowdowns, and suggesting potential upside given its current valuation relative to prior highs.

Analysis

Benson Investment Management initiated a new position in Keysight Technologies (KEYS), acquiring 31,240 shares valued at approximately $5.5 million, representing 2% of its 13F reportable AUM as of September 30. This strategic move diversifies Benson's portfolio, which is heavily weighted towards mega-cap technology firms like Alphabet and Microsoft, by adding exposure to high-quality industrial technology. The investment is seen as a calculated pivot to gain exposure to the hardware and R&D infrastructure enabling AI expansion, potentially hedging against overconcentration in the digital economy's front end.

Keysight Technologies recently reported robust Q3 FY25 results, with revenue increasing 11% year-over-year to $1.35 billion and non-GAAP EPS of $1.72, both exceeding guidance. Management subsequently raised full-year guidance, driven by a 7% rise in orders. This strong performance was fueled by double-digit growth in commercial communications and steady defense demand, alongside contributions from aerospace and semiconductor testing, effectively defying a broader industrial slowdown.

Despite its strong operational performance, KEYS shares have only gained 0.3% year-to-date as of October 9, 2025, underperforming the S&P 500 by approximately 12 percentage points. The current share price of $159.49 remains well below its 2021 highs. This valuation suggests potential for upside if the testing and measurement cycle strengthens into fiscal 2026, aligning with the company's role as a global leader in electronic design and test solutions across diverse high-growth sectors.

Key Decisions for Investors

• Investors seeking diversification from mega-cap tech and exposure to critical industrial technology underpinning AI and defense sectors should evaluate Keysight Technologies.
• Monitor for continued strong order growth and positive guidance revisions, particularly in commercial communications and defense, as indicators of sustained operational strength.
• Assess if the current share price, which is below 2021 highs despite strong fundamentals and raised guidance, presents an attractive entry point for long-term growth.