Keysight Technologies (KEYS): A Mid-Cap Gem in the Hands of Steven Cohen’s Point72

In an era where technological innovation drives economic progress, Keysight Technologies (KEYS) stands out as a critical player in the $135 billion electronic design and test equipment market. With a market cap hovering near $26 billion as of May 2025—positioning it as a mid-cap leader—the company has attracted the attention of hedge fund titan Steven Cohen’s Point72 Asset Management. This strategic positioning, coupled with strong fundamentals and institutional backing, suggests Keysight could deliver outsized returns for investors.
Why Keysight Deserves Attention
Keysight designs and manufactures advanced measurement tools and software solutions used in industries ranging from 5G telecommunications to aerospace and semiconductor manufacturing. Its products are indispensable for companies developing next-generation technologies, making it a beneficiary of long-term secular trends.

Market Cap Dynamics and Valuation
Keysight’s market cap rose from $25.84 billion on May 8, 2025, to $26.46 billion later in the month, reflecting investor optimism about its growth trajectory. This dynamism underscores the company’s role as a leader in its niche. For context, its closest peer, Advantest, has a market cap of $33.07 billion, while smaller competitors like Camtek lag far behind at $3.17 billion. Keysight’s valuation is further supported by robust financials: in Q1 2025, it reported revenue of $1.30 billion, a 15% year-over-year increase, with free cash flow of $346 million.
Point72’s Strategic Bet
Steven Cohen’s Point72 has been a vocal supporter of Keysight, increasing its stake by 87.9% in Q4 2024 to 2.1 million shares, valued at $129 million. This move aligns with Point72’s focus on companies with secular growth tailwinds. The firm’s decision to boost its position despite broader market volatility—Cohen has expressed bearishness on the U.S. economy in late 2024—suggests confidence in Keysight’s resilience and upside.
Other institutional players have also taken notice. Norges Bank increased its holdings by 42.3% in Q4 2024, while BlackRock, though reducing its stake slightly in Q1 2025, remains a top 10 holder. Combined, institutions own 78.45% of outstanding shares, a testament to institutional credibility.
Catalysts for Growth
- 5G and 6G Infrastructure: Keysight’s test solutions are critical for deploying next-gen networks. With global 5G investment projected to hit $1.5 trillion by 2030, demand for its tools is likely to surge.
- Semiconductor Boom: The semiconductor industry’s $600 billion market cap growth over the next decade will require advanced testing equipment, a core competency of Keysight.
- Aerospace and Defense: Governments globally are ramping up spending on defense tech, creating opportunities for Keysight’s aerospace measurement systems.
Analyst Sentiment and Technicals
Analysts are bullish. Guggenheim and Jefferies have issued “Buy” ratings, with a median price target of $73, implying a 12% upside from its May 2025 price of $65. Technical indicators also favor a rebound, with the stock hovering near its 50-day moving average and RSI (Relative Strength Index) suggesting undervaluation.
Risks to Consider
- Supply Chain Disruptions: Dependence on semiconductor suppliers could impact margins.
- Geopolitical Tensions: Trade restrictions, such as those in U.S.-China tech relations, might limit access to key markets.
Conclusion: A Compelling Case for Upside
Keysight Technologies is primed to capitalize on secular growth in critical tech sectors. With a market cap that reflects both its current strength and future potential, institutional backing from Point72 and others, and a solid financial foundation, the stock offers compelling upside.
The numbers tell the story: a 15% revenue growth rate, $346 million in free cash flow, and a median price target $73 (vs. a recent $65 share price) suggest investors could see strong returns. As Cohen’s Point72 continues to double down on this mid-cap leader, now may be the time to consider a position in KEYS.
Data as of May 2025. Past performance is not indicative of future results.
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