Macom Technology Solutions upgraded by BMO, targets $335 per share

MACOM Technology Solutions (MTSI) shares rose after BMO Capital upgraded the stock to Outperform, citing strong fundamentals and growth potential in data centers and defense markets. BMO's confidence in MACOM's business momentum attracted investor attention, though rising inventories and receivables could pressure future cash flow.

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.