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MACOM Stock Rallies on Analyst Upgrade and New 3.2T AI Chipset
MACOM Technology Solutions (NASDAQ: MTSI) shares rose more than 4% in morning trading after a dual catalyst of a significant analyst upgrade and a new product announcement for the artificial intelligence infrastructure market.
Analyst Upgrade Cites Compelling Valuation
BMO Capital Markets upgraded MACOM's stock to Outperform from Market Perform, establishing a new price target of $335. Analyst Harsh Kumar, in a note to clients, highlighted that the stock's valuation has become considerably more compelling following a significant pullback from its peak in May.
According to BMO, the company's forward multiples have contracted from the high-50s in June to approximately 29x. The firm also pointed to solid underlying fundamentals in MACOM’s datacenter and industrial/defense segments, with its space business poised to become a meaningful growth driver in the next year.
New 3.2T Chipset Targets AI Infrastructure
AdReinforcing the bullish outlook, MACOM announced the launch of a new front-end chipset for 3.2T optical interconnect applications. This platform is engineered to support the demanding needs of next-generation AI infrastructure, cloud data centers, and high-speed networking.
The solution delivers up to 3.2 terabits per second of throughput and includes new high-performance transimpedance amplifiers and photodiodes. CEO Stephen G. Daly noted the chipset was "engineered and optimized as a platform, helping customers optimize link performance while reducing development and qualification efforts." All components are immediately available.
Market Reaction
The combination of the upgrade and product launch sent shares up 4.2% to $274.19, touching a session high of $275.05. The move comes as the stock has declined from a 52-week high of $418.90, lending credibility to the analyst's valuation thesis. The company's recent strong fiscal Q3 2026 results, which beat Wall Street estimates, provided an additional supportive backdrop for the rally.
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