BMO Upgrade Sparks Rally in MACOM Stock

BMO upgraded MACOM Technology Solutions to Outperform with a $335 price target, citing a 36% stock drop and attractive valuation. The company's datacenter and defense businesses are seen as structurally sound. Analysts' average target is $341, with a consensus rating of Moderate Buy.

MACOM Technology Solutions (MTSI) stock rose 4.2% to $274.19 after BMO upgraded it to Outperform with a $335 target, citing compelling valuations and strong fundamentals. The company also launched a 3.2T optical interconnect chipset for AI and cloud data centers. The broader market was modestly supportive, with the NASDAQ up 0.2%.

MACOM Technology Solutions (MTSI) stock rose 2.8% premarket after BMO Capital upgraded it to Outperform with a $335 price target. The upgrade follows a 36% stock decline from May, with forward multiples decreasing to 29x. BMO cited strong fundamentals in datacenter and industrial/defense segments, raising revenue and EPS estimates.

BMO Capital upgraded MACOM Technology (MTSI) to Outperform with a $335 price target, citing strength in datacenter and defense segments. The stock is down 36% from its peak but up 103% year-over-year. MACOM reported Q3 earnings of $1.40 per share, beating estimates, with revenue up 35.8% YoY. BMO raised its revenue and EPS estimates, seeing an attractive entry point.

MACOM Technology Solutions (MTSI) rose 4.9% after announcing a 3.2T chipset for AI infrastructure, offering 3.2Tbps throughput. The stock is up 50.9% YTD but 35.5% below its 52-week high. Recent AI safety concerns caused a 11.9% drop days prior, per CNBC.

Shares of Applied Materials, Lam Research, Monolithic Power Systems, Marvell Technology, and MACOM fell 6.4%, 7.7%, 7.1%, 6.9%, and 11.9% respectively, after CEOs of Anthropic, OpenAI, and SpaceX called for a slowdown in AI development, raising concerns about tech valuations and chipmaker earnings.