MACOM Technology Solutions Holdings, Inc. (MTSI) Down 5.1% — Should I Let It Go?
Key Points
MACOM Technology Solutions Holdings, Inc. (MTSI) was under pressure in today’s session, with the stock sliding 5.11% to $180.15. That move leaves shares losing ground by $9.71 from the prior close of $189.86, marking a sharp single-day retreat near the top of its recent trading range. Trading activity was subdued, with roughly 588,900 shares changing hands versus a 90-day average of about 1.05 million shares, suggesting the decline is unfolding on lighter-than-usual participation. Even so, the stock remains elevated on a longer-term basis, hovering just below its 52-week peak of $190.95 set on Dec. 9, 2025, but now sitting more than $10 off that high.
From a broader perspective, the latest pullback highlights growing headwinds after a substantial run over the past year, where the stock climbed from a 52-week low of $84.00 to near $191 before starting to retreat. Today’s weakness stands out in the semiconductor space, where peers such as Intel (INTC), Microchip Technology (MCHP), GLOBALFOUNDRIES (GFS), SiTime (SITM), and Rigetti Computing (RGTI) have also seen bouts of volatility, but MACOM’s percentage drop today is comparatively steep and signals that recent momentum is losing steam. With the price backing away from its recent high and volume trailing its average, the near-term technical picture skews cautious, suggesting that buyers are stepping back as the stock continues to give up recent gains and consolidate below its peak.
Why MACOM Technology Solutions Holdings, Inc. Price is Moving Lower
Recent weakness in MACOM Technology Solutions Holdings, Inc. shares is emerging despite a generally constructive sell-side backdrop, and that disconnect is fueling near-term pressure. Analysts have been lifting price targets into December on the back of strong EPS execution and favorable optical components demand, with one high-profile target move to $225 tied to AI-related acquisitions benefiting suppliers. Yet in the absence of fresh company-specific catalysts over the past week, the market appears less willing to chase those bullish scenarios. Instead, attention is turning to execution risk and the possibility that expectations for AI and optical tailwinds are already embedded in the stock after a strong prior run.
A major insider sale on Dec. 9 by a key shareholder is also weighing on sentiment, as large disposals at elevated levels often raise concerns about valuation and future upside. Fundamentally, MACOM’s profile shows tension between solid top-line expansion and weaker profitability. Revenue grew 3.6% quarter over quarter to $261.17 million and more than 30% year over year, but the company is still posting negative EPS and a profit margin of -5.6%. That combination can magnify downside when growth stocks fall out of favor, especially in a volatile semiconductor tape. With peers such as Intel, Microchip Technology, GLOBALFOUNDRIES, SiTime, and Rigetti also facing cyclical and competitive pressures, investors are reassessing risk across the group. For MACOM, the result is a stock under pressure as the market focuses less on optimistic long-term narratives and more on near-term earnings quality, insider selling, and sector risk.
What is the MACOM Technology Solutions Holdings, Inc. Rating - Should I Sell?
Weiss Ratings assigns MTSI a D rating. Current recommendation is Sell. This downgrade on 9/15/2025 signals a deteriorating risk/reward profile that investors should treat with caution. A D rating means the stock has been an underperformer relative to similarly risky names and that, in our view, downside risk currently outweighs upside potential.
The sub-indices help explain why. The Weak Growth Index shows that, despite headline revenue growth of 30.12%, the underlying earnings and cash-flow picture is problematic. A negative profit margin of -5.60% and an extreme forward P/E of -236.41 indicate that growth has not translated into sustainable profitability. The Fair Efficiency Index further suggests management is only generating middling returns on capital, which limits the company’s ability to turn sales gains into lasting shareholder value.
On the risk side, the Excellent Solvency Index indicates a solid balance sheet and good ability to meet obligations. However, this strength is not enough to offset weak fundamentals and only Fair scores for both the Total Return Index and Volatility Index. In practice, that means shareholders have taken on meaningful price swings without being compensated with superior long-term performance.
Within information technology, MACOM’s D rating places it alongside other challenged names such as GLOBALFOUNDRIES Inc. (GFS, D) and below peers like Intel Corporation (INTC, D+) and Microchip Technology Incorporated (MCHP, D+). In an already risky sector, MTSI’s combination of negative margins, expensive valuation and only average efficiency leaves little margin for error, reinforcing the cautious stance implied by its D (Sell) rating.
About MACOM Technology Solutions Holdings, Inc.
MACOM Technology Solutions Holdings, Inc. (MTSI) operates in the semiconductors and semiconductor equipment industry, specializing in analog, RF, microwave and millimeter wave solutions. The company focuses on components that enable high-frequency signal transmission and processing, targeting applications in telecommunications, data centers, industrial, aerospace and defense systems. Its product portfolio includes RF amplifiers, switches, attenuators, phase shifters, diodes, integrated circuits and various optoelectronic components used in optical networks. These devices are often embedded deep within larger systems, giving MACOM limited direct visibility with end users and tying its fortunes to equipment manufacturers’ design choices and upgrade cycles.
MACOM competes in segments characterized by rapid technology shifts, pricing pressure and demanding qualification processes. In optical and high-speed networking, the company supplies components for long-haul, metro, access and data center interconnect markets, where design wins can be difficult to secure and even harder to protect against lower-cost alternatives. In aerospace and defense, MACOM provides high-reliability microwave and millimeter wave components for radar, electronic warfare and communications, but these programs can be lumpy and subject to budget and program timing risks. Although MACOM emphasizes differentiated RF and optoelectronic technologies and maintains a portfolio that spans legacy and emerging standards, it faces a crowded competitive landscape that includes larger, better-capitalized semiconductor manufacturers as well as specialized niche players targeting similar high-frequency and optical applications.
Investor Outlook
With MACOM Technology Solutions Holdings, Inc. (MTSI) carrying a D (Sell) Weiss Rating, investors may want to focus on downside risk, watching whether recent price trends weaken further or stabilize at key technical support levels. Sector sentiment in Information Technology and any shifts in risk indicators that could eventually move the stock out of Sell territory also warrant close attention. See full rankings of all D-rated Information Technology stocks inside the Weiss Stock Screener.
--