Does MACOM’s Licensing of HRL’s 40nm GaN-on-SiC Tech Reshape Its Long-Term Growth Story (MTSI)?

• In November 2025, MACOM Technology Solutions announced an agreement to license and exclusively manufacture HRL Laboratories’ 40nm T3L GaN-on-SiC semiconductor process for both commercial and defense applications, while also reporting quarterly results with revenue guidance of US$260.10 million and aligned EPS expectations between US$0.91 and US$0.95 per share.
• This milestone enables MACOM to broaden its high-frequency product portfolio and strengthens its position in critical growth areas such as data center and 5G markets, despite recent margin and industrial market headwinds.
• We'll explore how MACOM's exclusive access to advanced GaN-on-SiC technology could accelerate its growth narrative in key communications markets.

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MACOM Technology Solutions Holdings Investment Narrative Recap

To be a long-term shareholder in MACOM Technology Solutions, you have to believe in the company’s ability to ride secular growth trends in high-performance RF and photonic semiconductors, especially in data center and 5G markets. The exclusive licensing and manufacturing deal for HRL Laboratories’ 40nm T3L GaN-on-SiC process is directionally positive, as it opens up new product avenues, but it does not immediately address the short-term challenge of persistent margin headwinds from recent acquisitions and industrial market softness.

The most relevant recent announcement is MACOM’s Q3 earnings report, where the company delivered revenue growth but saw its stock decline due to margin pressure from acquisitions and a slow industrial recovery. These margin constraints tie directly to both the current risk of delayed profitability improvement and the urgency behind new technology initiatives, such as the HRL process transfer, which could eventually help shift gross margins up as production scales.

By contrast, investors should be especially mindful that, despite impressive technology moves, the company’s margin improvement timeline remains ...

Read the full narrative on MACOM Technology Solutions Holdings (it's free!)

MACOM Technology Solutions Holdings' narrative projects $1.2 billion in revenue and $586.5 million in earnings by 2028. This requires 11.2% yearly revenue growth and a $656.4 million increase in earnings from the current level of -$69.9 million.

Uncover how MACOM Technology Solutions Holdings' forecasts yield a $149.29 fair value, in line with its current price.

Exploring Other Perspectives

Fair value estimates from the Simply Wall St Community range from US$72.09 to US$149.29, based on just 2 perspectives. With margin expansion still years away, opinions can differ sharply on MACOM’s earnings trajectory over the next few years, explore how these views might align with your own outlook.

Explore 2 other fair value estimates on MACOM Technology Solutions Holdings - why the stock might be worth as much as $149.29!

Build Your Own MACOM Technology Solutions Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your MACOM Technology Solutions Holdings research is our analysis highlighting 1 key reward that could impact your investment decision.
• Our free MACOM Technology Solutions Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate MACOM Technology Solutions Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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