Goldman Sachs Semiconductor Stocks: Top 5 Picks

3. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI)

Number of Hedge Fund Holders: 21

Goldman Sachs’ Stake Value: $1,785,588,000

MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is a Massachusetts-based company that designs and manufactures analog semiconductor solutions for use in wireless and wireline applications across the radio frequency, microwave, millimeter wave, and lightwave spectrum worldwide. In Q2 2022, Goldman Sachs held 20.5 million shares of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) worth $1.78 billion, representing 0.40% of the total portfolio. 

On November 3, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) reported its Q3 results, posting non-GAAP earnings per share of $0.77 and a revenue of $178.1 million, outperforming market estimates by $0.01 and $0.73 million, respectively. For the fiscal first quarter ending December 30, 2022, MACOM expects revenue to be in the range of $177 million to $182 million, versus a consensus of $177.54 million.

Benchmark analyst David Williams on November 7 downgraded MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) to Hold from Buy and removed his prior price target. While MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI)’s Q4 results and outlook exceeded expectations and he believes Macom’s strategic product positioning and robust underlying secular trends will continue to offer revenue stability through the cycle, he thinks the present share price reflects an “appropriate premium multiple” on his $3.20 FY23 EPS estimate, the analyst told investors.

According to Insider Monkey’s data, 21 hedge funds were long MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) at the end of June 2022, with combined stakes worth nearly $157 million. D E Shaw is the biggest stakeholder of the company, with 974,141 shares valued at approximately $45 million. 

Here is what Aristotle Capital Management Small Cap Equity has to say about MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) in its Q1 2022 investor letter:

“MACOM Technology Solutions (NASDAQ:MTSI), a designer and manufacturer of high-performance semiconductors, declined in the face of industry-wide supply chain issues. Nevertheless, the company’s fundamentals continue to advance, as we believe the company’s meaningful exposure to growing demand from Data Center and 5G end market applications plus solid company-specific execution has driven faster-than-expected profitability. We believe the underlying demand drivers are sustainable for the foreseeable future and continue to maintain our position.”