How Investors Are Reacting To MACOM (MTSI) Launching Long-Range Optical Chipset for Data Centers

• Earlier this week, MACOM Technology Solutions announced the launch of a new chipset allowing PCIe and CXL connectivity to extend up to 100 meters over optical fiber, aimed at data centers and high-performance computing.
• This product directly targets the needs of disaggregated computing infrastructures, offering the potential to reduce latency, lower power consumption, and increase scalability for large data environments.
• We'll examine how MACOM's new optical chipset could impact its position as demand for efficient, scalable data centers accelerates.

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MACOM Technology Solutions Holdings Investment Narrative Recap

For shareholders in MACOM Technology Solutions, the investment thesis centers on capturing the growth from AI-driven cloud infrastructure and data center demand, especially as high-performance optical interconnects become integral. The launch of MACOM’s new chipset for extending PCIe and CXL connectivity could further support its position in this market, but short-term volatility in data center orders and underutilization risks at its facilities remain the largest headwinds. In the near term, the impact of this product news on these key near-term catalysts appears limited, as any revenue contribution or margin effect is unlikely to be immediate.

The June 2025 introduction of new high-power GaN-on-SiC amplifiers for advanced radar and communications systems is a recent announcement most relevant in the context of MACOM’s push for product-driven growth across multiple end-markets. Like the new optical chipset, this earlier launch signals management’s ongoing focus on innovation in secular growth verticals, defense, data center, and high-speed communications, that underpin the main catalysts supporting the company’s long-term outlook.

However, despite the promising technology pipeline, investors should not overlook the challenge of gross margin improvements, as ...

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

MACOM Technology Solutions Holdings is projected to reach $1.2 billion in revenue and $586.5 million in earnings by 2028. This outlook relies on an annual revenue growth rate of 11.2% and an increase in earnings of $656.4 million from the current -$69.9 million.

Uncover how MACOM Technology Solutions Holdings' forecasts yield a $149.29 fair value, a 13% upside to its current price.

Exploring Other Perspectives

Retail investors in the Simply Wall St Community estimate fair values for MACOM from US$71.18 to US$149.29 based on three independent analyses. While some anticipate accelerating demand from AI and next-generation data centers, views on margin risk and cyclical growth diverge, reminding you that perspectives on performance can vary widely.

Explore 3 other fair value estimates on MACOM Technology Solutions Holdings - why the stock might be worth as much as 13% more than the current price!

Build Your Own MACOM Technology Solutions Holdings Narrative

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• A great starting point for your MACOM Technology Solutions Holdings research is our analysis highlighting 1 key reward that could impact your investment decision.
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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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