MACOM Technology Solutions Holdings, Inc. (MTSI) Stock Price & How to Invest

MACOM designs and manufactures high performance semiconductors for three end markets: Industrial and Defense, Data Center, and Telecom. Headquartered in Lowell, Massachusetts, with more than 70 years of application history behind it, the company builds RF, microwave, analog, mixed signal and optical components, and it runs its own compound semiconductor fabrication for gallium arsenide, gallium nitride, indium phosphide and specialized silicon. Products range from integrated circuits and multi chip modules to diodes, amplifiers, switches and optical subsystems, sold to more than 6,000 end customers who put them inside radar systems, satellite links, wireless basestations, optical transport gear and data center networks. In the quarter ended July 3, 2026, Industrial and Defense contributed ~$133.4 million, Data Center ~$137.6 million and Telecom ~$71.3 million.

The investment picture turns almost entirely on how durable the data center acceleration proves to be. Revenue for the trailing twelve months came to ~$1.16 billion, but the run rate is far higher than that average suggests: fiscal third quarter revenue of ~$342.2 million was up ~35.8% year over year, and management guided the fiscal fourth quarter to ~$415 million to ~$425 million, which at the midpoint would be roughly 61% above the same quarter a year earlier. Adjusted gross margin reached ~59.7% and adjusted operating margin ~31.5%, both meaningfully wider than a year ago, because incremental volume flows through owned fabs. Against that, the market has already repriced the company hard, with market value up roughly 167% over the past year to ~$25.0 billion, or about 21.5 times trailing sales and ~104 times trailing GAAP earnings.

Valuation is the first thing to weigh: at roughly 21.5 times trailing sales and about 104 times trailing GAAP earnings after a year in which market value rose roughly 167%, a single quarter of decelerating data center orders could compress the multiple sharply. Geographic concentration has also increased, with customers billed in China accounting for ~$133.8 million of the ~$342.2 million booked in the fiscal third quarter, up from ~$71.0 million a year earlier, which raises exposure to export controls, tariffs and domestic substitution by Chinese suppliers. Reported earnings quality deserves a careful read, since GAAP net income of ~$100.7 million in the quarter included a ~$41.5 million non cash fair value gain on the IQE investment, and fiscal 2025 GAAP results absorbed a ~$193.1 million loss on extinguishment of convertible debt. Roughly $340 million of convertible notes now sit in current liabilities, and settlements of earlier notes added shares, taking diluted share count from ~73.8 million to ~78.4 million over two years. Telecom, meanwhile, grew only about 5% year over year, so the growth story rests on two of three segments; the fiscal third quarter Form 10-Q states the company was not involved in any material pending legal proceedings.

14 analysts publish price targets on MTSI, averaging $399.64 against a $327.53 price as of August 2026, or +22.0%. The published targets run from $300.00 to $475.00, a moderate spread, and the ratings split 12 buy, 3 hold, 0 sell. Over the last six months there have been 11 raises and 1 cut among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full MTSI forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on MACOM Technology Solutions Holdings, Inc.. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Data center optical became the largest segment. Data Center revenue reached ~$137.6 million in the fiscal third quarter of 2026, up from ~$75.8 million a year earlier, an increase of roughly 82% that pushed it past Industrial and Defense for the first time. The most optimistic published target, $475.00, assumes this works close to its best case.

The case against. Valuation is the first thing to weigh: at roughly 21.5 times trailing sales and about 104 times trailing GAAP earnings after a year in which market value rose roughly 167%, a single quarter of decelerating data center orders could compress the multiple sharply. The most pessimistic target, $300.00, is roughly what MTSI is worth if this bites instead.

Read the full bull and bear case on MTSI, including what would have to change to break either one. Walnut is not an investment adviser.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see MACOM Technology Solutions Holdings, Inc.'s investor relations page or your broker.

• Revenue (TTM): ~$1.16B
• Q3 FY2026 revenue: ~$342.2M, up ~36% year over year
• Adjusted gross margin (Q3 FY2026): ~59.7%
• Diluted EPS (TTM, GAAP): ~$3.14
• Market cap: ~$25.0B
• Price to sales (TTM): ~21.5x

The trailing price to earnings ratio of roughly 104 is flattered by a one time gain: fiscal third quarter GAAP net income of ~$100.7 million included ~$41.5 million of non cash investment fair value gain, versus adjusted net income of ~$109.8 million, or ~$1.40 per diluted share. Guidance for the fiscal fourth quarter of ~$415 million to ~$425 million in revenue and ~$1.97 to ~$2.03 in adjusted diluted earnings per share would put the forward multiple far below the trailing one, which is precisely what the current price is discounting. The balance sheet held ~$89.6 million of cash plus ~$573.4 million of short term investments as of July 3, 2026, against ~$340 million of convertible notes now classified as current.

If you want MTSI exposure as part of a larger bundle rather than directly, these ETFs hold it meaningfully. Weights are approximate and refresh quarterly.

Other names that sit close to MTSI: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get MTSI exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it (SCHA, IJK), which spreads the position across many companies. Or build it into a focused thematic portfolio, so MTSI sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where MTSI fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

MACOM is a genuinely accelerating analog and photonics business carrying a valuation that leaves very little room for the data center ramp to stall.

Whether MTSI is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is MTSI a buy or a sell?, and where the stock could go from here in the MTSI stock forecast.

For income investors, whether MTSI pays a dividend and how the payout looks is covered in does MTSI pay a dividend? And to weigh MTSI against a peer, read the full side-by-side comparisons: MTSI vs AVGO and MTSI vs MRVL.