MACOM Technology Solutions (MTSI) Fell Despite Reporting Strong Results

Aristotle Capital Boston, LLC, an investment advisor, released its “Small/Mid Cap Equity Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. small/mid-cap equities reported solid results in the third quarter, driven by a favorable macroeconomic backdrop. In the third quarter, the strategy delivered a return of 2.57% net of fees (3.07% gross of fees), underperforming the 9.00% total return of the Russell 2500 Index. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Aristotle Capital Small/Mid Cap Equity Strategy highlighted stocks such as MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI). MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) manufactures analog semiconductor solutions for wireless and wireline applications. The one-month return of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) was 12.47%, and its shares gained 30.17% of their value over the last 52 weeks. On October 31, 2025, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) stock closed at $148.13 per share, with a market capitalization of $11.031 billion.

Aristotle Capital Small/Mid Cap Equity Strategy stated the following regarding MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) in its third quarter 2025 investor letter:

“MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) , is a designer and manufacturer of high-performance semiconductor products. Despite reporting strong Q3 earnings, the stock declined as investors reacted to a slight margin impact from a recent acquisition and a slower-than-expected recovery in the industrial market—both short-term deviations from analyst forecasts. We maintain our position, as we believe the company’s meaningful exposure to growing demand from Data Center and 5G end market applications along with the integration of recent acquisitions and domestic manufacturing footprint should drive additional shareholder value in periods to come.”

Is MACOM Technology Solutions Holdings, Inc. (MTSI) the Best Mid Cap Tech Stock to Buy Now?

MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) at the end of the second quarter, which was 36 in the previous quarter. While we acknowledge the risk and potential of MACOM Technology Solutions Holdings, Inc. (NASDAQ: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 MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) and shared Artisan Small Cap Fund’s views on the company in the [previous quarter. In addition, please check out our hedge fund investor letters Q3 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.