Bottleneck Solvers

BN · rank #8 · 2026-07-22

MTSI

NASDAQ · $21.59B (USD)

SignalHold
verdict · CAUTION

The exact numbers the algorithm saw.

Bottleneck themes
The structural shortage this name supplies into.
Advanced AI chip packaging and memory
Factor scores and the inputs behind this pick.
Composite score
Z-score blend of the factors below; drives the rank.
0.48
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.
+43.0%
Last EPS surprise
Most recent reported EPS versus consensus.
-15%
Market cap (USD)$21.59B

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 semiconductor supplier of RF, microwave, and optical components used in industrial/defense, data center, and telecom infrastructure systems.

Rationale

The stock screens well for bottleneck_solvers because Q3 2025 showed record revenue, 26.7% forward growth, margin expansion, and strong exposure to AI/data-center packaging and memory-linked high-speed interconnect demand.

Material risks

  • 1Key OEM customers could engineer MACOM’s RF/optical content in-house or switch to alternative suppliers, which would break the bottleneck thesis.
  • 2The name is not a pure sole-source franchise and lacks clear long-term backlog visibility, so the upside case can be derailed if data-center and telecom demand normalizes.

AI verdict council

Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.

OpenAI
Proceed
Claude
Caution
Gemini
Error