Macom Technology Solutions upgraded by BMO, targets $335 per share

BMO Capital Markets upgraded MACOM Technology Solutions from Market Perform to Outperform on September 18, with analyst Harsh Kumar maintaining a $335 price target. The call came 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.

With shares trading near $263 at the time of the upgrade, the $335 target implies potential upside of about 27%. Kumar’s thesis boils down to a familiar formula in chipmaking: the fundamentals didn’t break, the price just got cheaper.

What triggered the upgrade

BMO first initiated coverage on MACOM on August 20-21, 2026, with that same $335 target and a neutral Market Perform rating. Roughly a month later, the stock’s steep decline created what Kumar views as a far more attractive entry point.

The core argument 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.

Broader analyst sentiment

The consensus among roughly 15 analysts covering MACOM lands at Moderate Buy, with an average price target of approximately $341. The range spans from a bearish $190 to a bullish $450.

That $341 average sits slightly above BMO’s $335 figure, suggesting Kumar’s view is on the conservative end of the bull camp. Revenue growth and margin expansion have been consistent themes in the company’s recent earnings reports, with the datacenter segment benefiting from surging demand for AI-related optical components.

The semiconductor valuation reset

MACOM’s multiple contraction from the high-50s to around 29x forward earnings represents a move from nose-bleed territory back toward something approaching historical norms for a mid-cap analog chipmaker.

What to watch from here

The key variable is whether major cloud providers maintain their current pace of AI infrastructure investment. Defense spending adds a layer of downside protection, as government contracts tend to be multi-year in nature, providing revenue visibility that consumer-facing chipmakers lack.

The gap between where shares are trading and the consensus target of $341 represents one of the wider disconnects in the mid-cap semiconductor space right now.

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