MACOM Technology Solutions (MTSI) Delivered Record Revenue and Profitability in Q1
Aristotle Capital Boston, LLC, an investment advisor, released its first-quarter 2026 investor letter for “Small Cap Equity Fund”. A copy of the letter is available to download here. U.S. small-cap equities delivered strong performance in the first quarter amid macroeconomic and geopolitical volatility, outpacing large-cap stocks. Improving earnings, attractive relative valuations, and a focus on domestic sectors supported the small caps in the quarter. In this backdrop, the Aristotle Small Cap Equity Fund (Class I-2) delivered a total return of 1.50% in the quarter, outperforming the Russell 2000 Index’s 0.89% return. The performance was supported by security selection in the information technology and financials sectors, along with underweight allocations to healthcare and industrials. The fund remains optimistic about the long-term outlook for U.S. small-cap equities. Please review the Strategy’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, Aristotle Small Cap Equity Fund 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 May 20, 2026, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) closed at $375.71 per share. One-month return of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) was 32.11%, and its shares gained 209.12% over the past 52 weeks. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) has a market capitalization of $28.66 billion.
Aristotle Small Cap Equity Fund stated the following regarding MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) in its Q1 2026 investor letter:
“MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is a designer and manufacturer of high-performance semiconductor products. The stock benefitted from strong earnings results that exceeded analyst expectations featuring record revenue and profitability, driven by accelerating demand across data-center, industrial/defense, and telecom end markets. We maintain our position, as we believe the company’s meaningful exposure to growing demand from data center and 5G end market applications along with the integration of recent acquisitions and domestic manufacturing footprint should continue to drive shareholder value.”
MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 35 hedge fund portfolios held MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) at the end of the fourth quarter, the same as in the previous quarter. In the second quarter of 2026, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) reported revenue of $289 million, up 6.4% sequentially and up over 22% year-on-year. While we acknowledge the potential of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
