Solid Results and Improved Guidance Lifted MACOM Technology (MTSI) Shares by 38%

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy returned 3.70% (gross) and 3.45% (net) in the fourth quarter compared to a 1.22% return for the Russell 2000 Growth Index. In 2025, the strategy returned 6.91% (gross) and 5.85% (net) compared to 13.01% for the index. Global equity markets ended the quarter on a positive note, with Europe leading, followed by Emerging Markets. In most markets, large caps outperformed small caps. The trade truce between the United States and China was prolonged for an additional year, but global geopolitical concerns, whether related to tariffs or not, persisted. Third-quarter GDP exceeded expectations, but consumer caution persists amid ongoing labor-market softening, influencing the Fed’s decision on interest-rate cuts. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, TimesSquare Capital U.S. Small Cap Growth Strategy highlighted MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) as one of its leading contributors. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is a high-power analog semiconductor solutions provider serving applications across radio frequency (RF), microwave, millimeter wave, and lightwave spectrum. On Aril 1, 2026, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) stock closed at $229.36 per share. One-month return of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) was 0.17%, and its shares gained 148.84% over the past 52 weeks. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) has a market capitalization of $17.21 billion.

TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) in its fourth quarter 2025 investor letter:

“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that are growing their shares of corporate IT budgets. At the beginning of the quarter, we added to our position in MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI), an analog semiconductor solutions provider. Later, the company bested expectations for revenues and earnings, with management increasing its guidance for the next quarter. That lifted its shares by 38%, and we trimmed our position at later peaks.”