Here’s Why MACOM (MTSI) is Among the 8 High Return Semiconductor Stocks to Buy Now

MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is one of the 8 High Return Semiconductor Stocks to Buy Now.

On May 19, 2026, Evercore ISI analyst Mark Lipacis raised the firm’s price target on MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) to $427 from $275 and kept an Outperform rating on the shares. Following a new round of Q1 AI channel checks, the firm said key themes included a shift from AI training-driven workloads toward inference-driven workloads by the end of 2026. Evercore added that the transition is increasing industry focus on cost-per-token, return on investment, and total cost of ownership, which is driving greater hyperscaler interest in internally developed ASICs and alternative accelerators.

Here's Why MACOM (MTSI) is Among the 8 High Return Semiconductor Stocks to Buy Now

Northland analyst Tim Savageaux also raised the firm’s price target on MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) to $375 from $300 and keeps an Outperform rating on the shares following what the firm described as a “solidly better” fiscal Q2 and a “step function upside” in Q3 guidance.

Earlier in the month, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) reported fiscal Q2 adjusted EPS of $1.09, versus the consensus estimate of $1.07. Revenue totaled $288.96M, versus the consensus estimate of $284.59M. President and CEO Stephen G. Daly said the company was pleased with its first-half fiscal year performance and expects strong revenue growth and profitability in the second half of the year.

MACOM expects Q3 adjusted EPS of $1.31 to $1.37, versus the consensus estimate of $1.15. The company also expects Q3 revenue of $331M to $339M, versus the consensus estimate of $299.81M. Management said adjusted gross margin is projected to range between 59% and 60% during the quarter.

MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) develops analog semiconductor solutions used in wireless and wireline applications across RF, microwave, millimeter wave, and lightwave technologies.

While we acknowledge the risk and potential of MTSI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MTSI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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