MACOM Technology Solutions Holdings, Inc. (MTSI) - Stock Analysis
Last updated: Sep 6, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Q2 beat with EPS of $1.09 versus $1.07 consensus and revenue up 22.5% YoY to $289M. Q3 revenue guidance of $331M-$339M, record 1.5:1 book-to-bill, record backlog, improving margins, strong free cash flow, and about 38.6% 21-day momentum support near-term continuation.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Margin Expansion ⢠Debt Reduction ⢠Liquidity Pressure MTSI's profitability, cash flow, and leverage improved sharply, but elevated valuation, weaker liquidity, and heavy investment outflows warrant caution.
Price Behavior
Key Price Behavior Insights: ⢠Oversold rebound ⢠Key support ⢠Downtrend intact Support Level: $257â$263 Resistance Level: $277â$293 MTSI is down 13.5% over the last month but bouncing from $257 support with RSI near 26; watch $257â$263 for a hold and $277â$293 for confirmation, as the broader downtrend remains intact.
Sentiment & News
Key News Insights: ⢠Record revenue growth ⢠Data-center demand ⢠Valuation concerns MACOM's record growth and upbeat outlook signal strong AI-driven momentum, though elevated valuation and concentration risks warrant caution.
AI Summary
MACOM's AI-optical interconnect ramp is transforming it into a higher-margin data-center infrastructure play, but at ~96x P/E the actionable thesis is to demand continued 800G/1.6T order strength, >1 book-to-bill, and ~37% operating margins before adding exposure, as any demand or inventory misstep could trigger sharp multiple compression.
Description
MACOM Technology Solutions designs and manufactures analog semiconductor components for wireless, wireline and optical applications across RF, microwave, millimeter-wave and lightwave frequencies. Its product range includes standard and custom active and passive RF/optical devices, multi-chip modules and subsystems that are incorporated into wireless base stations, high-capacity optical networks, radar, medical equipment and test systems. The company supplies telecommunications, industrial and defense, medical and data center markets through a mix of direct sales, applications engineering, independent representatives and distribution; it was founded in 1950 and is headquartered in Lowell, Massachusetts.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| May 15 | May 22 | MTSI | MACOM Technology Solutions Holdings, Inc. | Q2 beat with EPS of $1.09 versus $1.07 consensus and revenue up 22.5% YoY to $289M. Q3 revenue guidance of $331M-$339M, record 1.5:1 book-to-bill, record backlog, improving margins, strong free cash flow, and about 38.6% 21-day momentum support near-term continuation. | Closed | +2.8% |