MACOM (MTSI) Stock Trades Up, Here Is Why

What Happened?

Shares of network chips maker MACOM Technology Solutions (NASDAQ: MTSI) jumped 7.4% in the afternoon session after the company reported strong fourth-quarter 2025 financial results that beat expectations and issued an optimistic outlook for the first quarter of 2026. 

For the quarter, MACOM posted revenue of $271.6 million, a 24.5% increase from the same period in the previous year, and its adjusted earnings came in at $1.02 per share, with both figures surpassing analyst estimates. Adding to the positive results, the company provided an upbeat forecast for the first quarter of 2026. Management guided for revenue of approximately $285 million and adjusted earnings per share of $1.07 at the midpoint, both of which were ahead of Wall Street's projections. This combination of a solid quarterly performance and a better-than-expected outlook signaled strong business momentum to investors.

Is now the time to buy MACOM? Access our full analysis report here, it’s free.

What Is The Market Telling Us

MACOM’s shares are very volatile and have had 24 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock dropped 3% on the news that uncertainty increased over when key companies can resume large-scale sales of high-end artificial-intelligence chips to China. The U.S. government reportedly extended its review of export license applications for AI hardware, such as Nvidia's H200 chips, on national security grounds. This delay created uncertainty for chipmakers and reportedly led some Chinese customers to postpone orders until clearer guidance was issued. While there were earlier signals that some shipments could restart, the extended review process stalled progress, weighing on the stock of major exporters who saw China as a significant market. The situation highlighted the ongoing geopolitical tensions impacting the semiconductor industry's global supply chain.

MACOM is up 30.8% since the beginning of the year, and at $228.84 per share, has set a new 52-week high. Investors who bought $1,000 worth of MACOM’s shares 5 years ago would now be looking at an investment worth $3,650.

Microsoft, Alphabet, Coca-Cola, Monster Beverage—all began as under-the-radar growth stories riding a massive trend. We’ve identified the next one: a profitable AI semiconductor play Wall Street is still overlooking.Go here for access to our full report, it’s free.