MACOM Technology Solutions Holdings (MTSI): Is There Value After Recent Share Price Gains?

MACOM Technology Solutions Holdings (MTSI) shares have seen modest gains over the past month, rising about 10%. Many investors are now asking whether recent momentum could continue or if there is value at current levels.

See our latest analysis for MACOM Technology Solutions Holdings.

Building on recent momentum, MACOM Technology Solutions Holdings’ share price has climbed over 10% in the past month, with the stock now sitting at $140.33. That said, the past year’s robust 23% total shareholder return and strong multi-year gains suggest investor confidence is growing, which may indicate underlying growth potential rather than just short-term volatility.

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Despite impressive returns and growing investor interest, the question remains: Is MACOM Technology Solutions Holdings undervalued at current prices, or has the market already priced in all of its future growth prospects?

Most Popular Narrative: 6% Undervalued

The most closely followed narrative suggests MACOM Technology Solutions Holdings holds more value than its last close price of $140.33 indicates, hinting at further upside potential if its ambitious growth targets are met. This narrative’s fair value estimate sits at $149.29, supported by expectations of revenue acceleration and major improvements to profit margins ahead.

MACOM is set to benefit from accelerating demand in AI-driven cloud computing and hyperscale data center buildouts. This is evidenced by strong revenue growth from high-speed optical interconnects, photodetectors, LPO chipsets, and upcoming PCIe equalizer solutions. These factors position the company for sustained top-line growth as AI workloads proliferate.

Read the complete narrative.

Curious what makes this price target tick? The growth formula here does not just rest on one big bet but a unique mix of aggressive margin expansion, new product launches, and a rapid shift in industry tailwinds. Want to know which forecasted financial leaps could transform future profit multiples for MACOM? The story behind the numbers will surprise you.

Result: Fair Value of $149.29 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, data center and telecom market volatility, along with ongoing challenges with fab capacity expansion, could limit MACOM’s earnings growth sooner than anticipated.

Find out about the key risks to this MACOM Technology Solutions Holdings narrative.

Another View: What Does the SWS DCF Model Say?

While analyst consensus values MACOM shares above their current price, our DCF model arrives at a far more cautious view, with a fair value closer to $75.29 per share. This suggests the market could be overestimating future cash flows. Could sentiment be running ahead of fundamentals?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out MACOM Technology Solutions Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own MACOM Technology Solutions Holdings Narrative

Prefer to dig deeper and craft your own view? It only takes a few minutes to build your own take on the data and trends, so why not give it a try. Do it your way

A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding MACOM Technology Solutions Holdings.

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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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