In-line Results and Stronger Than Expected Outlook Lifted MACOM Technology Solutions Holdings, Inc. (MTSI) Higher

Artisan Partners, an investment management company, released its fourth-quarter 2025 investor letter for “Artisan Mid Cap Fund”.  A copy of the letter can be downloaded here. The Fund seeks to invest in companies that possess franchise characteristics, with strong earnings trajectories, and are trading at a discount to the estimated private market value. US equities ended a record year with robust fourth-quarter gains. The Fund’s Investor Class, ARTMX, delivered -0.44%, the Advisor Class, APDMX, delivered -0.37%, and the Institutional Class, APHMX, delivered -0.35% in the fourth quarter compared to -3.70% for the Russell Midcap® Growth Index. Continued strength in information technology (IT) and health care contributed to the performance during the quarter. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks like MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI). MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is a technology company that provides analog semiconductor solutions across the radio frequency (RF), microwave, millimeter wave, and lightwave spectrum. On February 23, 2026, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) stock closed at $245.53 per share. One-month return of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) was 12.17%, and its shares are up 105.86% over the past twelve months. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) has a market capitalization of $18.418 billion.

Artisan Mid Cap Fund stated the following regarding MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) in its fourth quarter 2025 investor letter:

"Along with Coherent, other notable trims during the quarter were iRhythm and MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI). MACOM designs and manufactures high-performance semiconductors. Shares rose after the company delivered in-line results and issued a stronger-than-expected Q1 outlook. Its results included sequential gross margin improvement and one of its strongest booking quarters in years, as demand remained robust across key end markets, including data infrastructure and satellite communications. The company continues to execute on its strategy of expanding margins through differentiated compound semiconductor solutions and product cycles. We trimmed the position in line with our valuation discipline."

MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 34 hedge fund portfolios held MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) at the end of the fourth quarter, compared to 35 in the previous quarter. While we acknowledge the potential of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) and shared a list of best NASDAQ growth stocks to buy for the next 2 years. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.