BMO Upgrades MACOM to Outperform with $335 Price Target
BMO Capital Markets upgraded MACOM Technology Solutions from Market Perform to Outperform on September 18, with analyst Harsh Kumar maintaining a $335 price target. This upgrade comes after the semiconductor company's stock dropped roughly 36% from its May 2026 peak, compressing forward price-to-earnings multiples from the high-50s down to approximately 29x.
The core argument behind the upgrade is that MACOM's business in datacenters and defense remains structurally sound. Hyperscalers, cloud service providers, and other major infrastructure spenders continue to pour capital into AI compute, and MACOM sits in the supply chain for optical and connectivity technologies that make those buildouts possible.
Kumar also pointed to the defense sector as a stabilizing force for the company. MACOM supplies high-performance components used in radar, electronic warfare, and other military applications, a revenue stream that tends to be less cyclical than consumer-facing semiconductor markets.