CNH Industrial is attracting new investment from David Einhorn, who views the agricultural sector as undervalued.

David Einhorn of Greenlight Capital revealed on Wednesday that he has invested in a significant agricultural company, CNH Industrial.

At the CNBC's Delivering Alpha conference in New York City, a hedge fund investor highlighted the agricultural machinery company as an undervalued investment opportunity as the industry prepares to exit a bearish cycle.

Agriculture prices are low, and agricultural equipment is ending a down cycle, which is a situation that nobody cares about because it's cheap and the news over the next period of time isn't going to be very good, according to Einhorn.

In extended trading, CNH shares rose over 7% after his remarks.

CNH, previously known as Case New Holland, is a substantial dividend payer, boasting an over 4% yield, and is also actively repurchasing its own shares.

Einhorn stated that there is minimal financial leverage and that people may start visualizing earning a few dollars on the top cycle sometime next year, possibly in early 2026.

As aging equipment needs to be replaced, the high-profile investor predicts a return of demand.

"According to Einhorn, your agricultural equipment purchases experienced a boom, followed by a cyclical bust. The ag equipment industry is currently 20% below its average, and it is expected to be 20% above in three to four years. This is just the nature of how these businesses operate."

This year, the market has outperformed the industrial stock by more than 17%.