MACOM Technology Solutions Holdings Inc. (MTSI): This Stock Is Hurting From DeepSeek AI News That Could Turn Into Multibaggers

We recently compiled a list of the 10 Stocks Hurting From DeepSeek AI News That Could Turn Into Multibaggers. In this article, we are going to take a look at where MACOM Technology Solutions Holdings Inc. (NASDAQ:MTSI) stands against the other stocks.

US semiconductor stocks are getting hammered after the Chinese launched an AI model that has many questioning United States dominance in the AI space. China is currently facing restrictions on importing state-of-the-art semiconductor equipment needed for AI training. The launch of DeepSeek AI despite these restrictions is an eye-opener for Western tech companies, and the investor sentiment is reflecting it.

As market participants scamper to gather more information on China’s progress, we decided to look at stocks that are not only taking a hit from this news but also provide an attractive buy-the-dip opportunity. Against the backdrop of Project Stargate, a US government initiative to pump private sector investments into AI infrastructure, these companies also offer a potential multi-bagger opportunity.

Usually, it is the low market cap companies that become multibaggers. However, the failure rate when betting on these companies is quite high. We therefore chose companies with a market cap between $10 and $25 billion. In this way, our list contains businesses that are already established and will thrive on the boost provided by Project Stargate while successfully managing any headwinds. We believe the downside to these stocks is minimal because of the already sound fundamentals of these companies.

Is MACOM Technology Solutions Holdings, Inc. (MTSI) Among Billionaire Steve Cohen’s Top Stock Picks?

An aerial view of a semiconductor factory, with its intricate machinery and equipment.

MACOM Technology Solutions Holdings Inc. (NASDAQ:MTSI)

MACOM Technology Solutions Holdings Inc. provides analog semiconductor solutions for wireless applications. The company has seen improvements in its business in the last year which has resulted in 60% gains during this time, comfortably outperforming the S&P 500. Today, however, the stock is down over 13%.

MTSI continues to be a strong stock for 2025. It enjoys the ‘Trusted Foundry’ status from the Department of Defense, which not only implies that the company’s manufacturing processes and products are top-notch but also puts it in a favorable position if the government decides to spend in this sector.

Apart from AI, the firm also benefits from exposure to quantum computing. While this technology is still far away from commercialization, MTSI could in the future become a key supplier of equipment to firms that scale quantum computing. For now, AI and data centers are enough of a reason to invest in the company.

Overall MTSI ranks 3rd on our list of the stocks that are hurting from DeepSeek AI news that could turn into multibaggers. While we acknowledge the potential of MTSI as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as MTSI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.