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 po...