MTSI Stock Forecast & Price Target

MACOM Technology Solutions Holdings Inc has reported significant growth in its datacenter sales, which increased by 11% quarter-over-quarter and 68% year-over-year, primarily boosted by the production of its 800G optical solutions. Additionally, the Industrial and Defense segment experienced a steady rise, with revenue up 1% QoQ and 8.4% YoY, contributing to approximately 42% of the company's total revenue and nearing $100 million. Furthermore, the Telco revenue segment showed robust performance, gaining 18% QoQ and 38% YoY, driven by advancements in 5G infrastructure and other telecommunications areas.

MACOM Technology Solutions Holdings Inc. reported a decline in gross margin by 60 basis points, attributing this decrease to operational challenges at its Lowell fabrication facility. Additionally, despite a slight rise in operating expenses of approximately $6 million, the operating margin remained relatively stable, decreasing only 10 basis points to 25.3%. These factors highlight underlying operational inefficiencies and financial pressures that contribute to a negative outlook for the company's stock performance.