BN · rank #10 · 2026-07-20
MTSI
NASDAQ · $20.40B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.51 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +26.7% |
| Forward net margin Consensus forward net margin. | +17.9% |
| Net margin TTM Trailing twelve month net margin. | +16.5% |
| Margin expansion Forward minus trailing net margin (percentage points). | +1.4% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 2.05 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 2.47× |
| Analyst upside Spread between the consensus 12m target and the current price. | +51.4% |
| Last EPS surprise Most recent reported EPS versus consensus. | -15% |
| Market cap (USD) | $20.40B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
MACOM Technology Solutions is a niche analog/photonic semiconductor supplier to industrial/defense, data center, and telecom infrastructure, with Q3 FY2025 revenue at a record $252.1 million and strong adjusted margins.
Rationale
The quant signal looks valid because MACOM is levered to AI-era high-speed interconnect and advanced packaging demand, while forward revenue growth and margin expansion support a bottleneck-solver setup rather than a pure momentum trade.
Material risks
- 1Hyperscale and OEM customers could continue bringing more optical/interconnect capability in-house or switching to alternative vendors, which would erode MACOM’s niche design-in position and pricing power.
- 2The stock still depends on sustained data center and telecom capex, so any slowdown in upgrade cycles would pressure its high expected growth despite the recent earnings beat.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.