MACOM Technology Solutions Holdings, Inc. (MTSI): one to watch?

Likely a sector-wide AI-chip panic rather than a MACOM-specific problem, but the stock is still priced for perfection at 120x trailing earnings.

👀 WATCH Fundamentals72/100

Fell 23% in 11 trading day(s) — now $293.02

Why MTSI dropped

MACOM's drop coincides with a broad semiconductor and AI-stock selloff in July 2026 driven by fears that AI spending is overheated, not by any company-specific bad news; in fact MACOM's own guidance for the July quarter Sees Q3 revenue $331M-$339M, consensus $299.81M, meaning management is guiding above what analysts expected.

Fwd P/E 40.8Op margin 17.6%Rev growth 22.5%Debt/equity 29.2%Analyst upside 43.3%

How this scored 72/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 16.5%

✅ Generates cash Free cash flow $82M

✅ Not drowning in debt Debt/equity 29.2% (limit 200%)

✅ Can pay its bills Current ratio 7.5 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 16/25

Operating margin 17.6% 6/9

Net profit margin 16.5% 7/8

Return on equity 13.5% 3/8

Growth Is it getting bigger, or dying? 24/25

Revenue growth 22.5% 8/9

Earnings growth 42.9% 8/8

Expected profit change 195.8% 8/8

Value Is it cheap right now? 8/25

Forward P/E 40.8 0/10

PEG ratio 2.0 3/8

Analyst target upside 43.3% 5/7

Balance sheet Will it survive? 24/25

Debt / equity 29.2% 9/10

Current ratio 7.5 8/8

Free cash flow $82M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-16. Research only — not financial advice.