Does MACOM (MTSI) Leaving Russell Value Indices Recast Its Core AI Infrastructure Investment Story?

• In late June 2026, MACOM Technology Solutions Holdings was removed from several Russell value-oriented benchmarks, including the Russell 1000, 2500, 3000, 3000E, Small Cap Composite, and Midcap Value indices.
• This broad index removal coincided with a sector-wide reassessment of semiconductor valuations amid concerns about AI chip demand and capacity expansion by major cloud providers.
• Next, we’ll examine how MACOM’s exit from multiple Russell value indices intersects with its AI-infrastructure-led investment narrative.

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MACOM Technology Solutions Holdings Investment Narrative Recap

To own MACOM today, you need to believe in its role as a key supplier to AI data centers, 5G and defense, with future margin improvement as utilization at its fabs improves. The recent removal from several Russell value indices mainly affects how some funds hold the stock, rather than the core AI and SATCOM-driven thesis. The more immediate risk remains demand volatility and spending shifts in data center and telecom, especially as sentiment around AI chip demand cools.

The most relevant recent update is MACOM’s Q3 2026 revenue guidance of US$331 million to US$339 million, following Q2 sales of US$288.96 million. That outlook was issued before the late June index removals and sector pullback, so investors may want to weigh whether softer AI sentiment and potential cloud budget recalibrations could affect near term orders for MACOM’s high speed optical and RF products, which underpin the AI-infrastructure-led narrative.

Yet investors should be aware that if AI data center buildouts slow or become more cautious, MACOM’s exposure to…

Read the full narrative on MACOM Technology Solutions Holdings (it’s free!)

MACOM Technology Solutions Holdings’ narrative projects $2.1 billion revenue and $605.5 million earnings by 2029. This requires 24.4% yearly revenue growth and about a $428.7 million earnings increase from $176.8 million today.

Uncover how MACOM Technology Solutions Holdings’ forecasts yield a $398.36 fair value, a 24% upside to its current price.

Exploring Other Perspectives

Some higher conviction analysts were far more optimistic before this news, projecting revenue near US$2.2 billion and earnings around US$691.6 million by 2029, but if AI data center and SATCOM demand prove less robust than they expected, that bullish view of MACOM winning enough high speed optical and GaN satellite business may need to be revisited.

Explore 5 other fair value estimates on MACOM Technology Solutions Holdings – why the stock might be worth less than half the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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