MACOM Technology Solutions Holdings (MTSI) AI Stock Analysis

MACOM Technology Solutions Holdings

(BMV:MTSI)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Strong demand and backlog visibilityRecord bookings and a 1.6:1 book-to-bill ratio indicate demand is exceeding current shipments, creating backlog visibility for future revenue. This supports production planning, improves utilization potential, and gives MACOM a stronger foundation for sustaining growth across upcoming customer programs.

Negative Factors

Uneven earnings consistencyThe return to profitability is encouraging, but a prior annual loss and unusually variable historical margins show that earnings have not been consistently stable. Such volatility can reflect sensitivity to cycles, product mix, or one-time items and makes long-term profit progression less predictable.

MACOM Technology Solutions Holdings (MTSI) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 17.90B
Dividend Yield: ―
Average Volume (3M): 39
Price to Earnings (P/E): 73.2
Beta (1Y): -0.25
Revenue Growth: 16.44%
EPS Growth: ―
Country: Mexico
Employees: 2,000
Sector: Technology
Sector Strength: 61
Industry: Semiconductors

MACOM Technology Solutions Holdings Business Overview & Revenue Model

Company Description

MACOM Technology Solutions Holdings, Inc., along with its affiliated entities, specializes in the design and production of sophisticated analog semiconductor solutions. These critical components are integral to both wireless and wired connectivity sy...

MACOM Technology Solutions Holdings Earnings Call Summary

Earnings Call Date:Aug 05, 2026(Q3-2026)|% Change Since:30.80%|Next Earnings Date:Nov 04, 2026

Earnings Call SentimentPositive

The call presented strong operational and financial momentum: record bookings, accelerating revenue (Q3 revenue +18.4% sequential, +35.8% YoY), improving margins (gross margin +120 bps QoQ; operating margin materially higher YoY), robust cash balance and confident Q4 guidance. Data Center is the primary growth engine (large sequential and projected YoY increases), supported by ramping photodetectors and multi‑product demand across markets. The company is investing heavily in R&D and targeted capacity expansion (Indium Phosphide, MESC reactor, modest CapEx for potential CW laser ramp) while remaining disciplined on capital. Key risks highlighted include CW laser qualification uncertainty, rising working capital (inventory and AR), input cost inflation and longer lead times, tax rate increases in FY27, and uncertainty around CHIPS funding and several development programs that may or may not reach production. Overall, positive fundamentals and guidance outweigh the execution and market risks outlined.

Positive Updates

Record Revenue and Earnings

Q3 revenue of $342.2M, up 18.4% sequentially and 35.8% year-over-year. Adjusted net income $109.8M (up 30.2% sequential) and adjusted EPS $1.40 (vs. $1.09 in Q2). Company guided Q4 revenue $415M–$425M and adjusted EPS $1.97–$2.03.

Negative Updates

CW Laser Qualification Uncertainty

CW laser qualification is progressing (HTOL testing ongoing) but success not yet declared; production is contingent on meeting reliability and performance requirements with a potential production start targeted in late calendar 2027 (risk remains).

Company Guidance

MACOM guided fiscal Q4 FY2026 revenue of $415–$425 million, adjusted gross margin of 60–61% and adjusted EPS of $1.97–$2.03 (based on 78.9 million fully diluted shares); management expects adjusted operating margin of ~37% in Q4 and a 3% adjusted tax rate for the quarter (with tax rate forecast to rise to mid‑single digits in FY2027). Sequential growth is expected to be ~35% in Data Center, ~20% in Industrial & Defense and low‑single‑digit in Telecom; the company also expects Q4 operating cash flow in excess of $100 million, FY2026 CapEx of $60–$65 million, ongoing quarterly gross‑margin improvements into FY2027 and a path toward breaching a 40% operating margin next year.

MACOM Technology Solutions Holdings Risk Analysis

MACOM Technology Solutions Holdings disclosed 48 risk factors in its most recent earnings report. MACOM Technology Solutions Holdings reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

MACOM Technology Solutions Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MX:MTSI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVGO	74Outperform	$1.56T	40.46	43.91%	0.80%	48.69%	99.97%
SMTC	65Neutral	$11.89B	76.86	25.26%	―	17.84%	464.80%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SWKS	61Neutral	$20.60B	45.14	5.04%	3.24%	0.06%	-22.93%
MXL	50Neutral	$6.14B	-192.77	-6.11%	―	56.02%	83.39%

* Technology Sector Average

Performance Comparison

MX:MTSI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:MTSI	Macom Technology Solutions	6030.00	3844.99	175.97%
AVGO	Broadcom Inc.	326.08	-33.79	-9.39%
MXL	Maxlinear	67.47	51.85	331.95%
SMTC	Semtech Corp.	127.38	60.13	89.41%
SWKS	Skyworks Solutions	87.58	12.80	17.12%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

MACOM Technology Solutions Holdings AI Stock Analysis