I dug up another one. $MTSI (+1,61 %) It's not what you'd call a small cap and it's not a penny stock either. Nevertheless, I was not so familiar with it and I would be interested to know if anyone here is already invested or why you have refrained from investing so far.
MACOM provides semiconductor and radio frequency solutions for communication and data center applications. The company recently presented a new chip suite with 3.2 T Optical Solutions and announced ambitious growth targets until 2028. It is considered an important technology supplier for optical and RF connectivity in AI networks. In a peer comparison (e.g. Broadcom/Marvell), MACOM scores with focused analog drivers/TIAs and a clear LPO focus for low-power data center links. LPO stands for Linear-Drive Pluggable Optics. Traditional optical modules contain digital signal processors (DSPs) that process electrical signals before they are converted into optical signals. This is reliable - but energy-intensive and expensive.
LPO modules, on the other hand, dispense with DSPs and rely on analog linear signal transmission. This:
- significantly reduces energy consumption per bit (often >40 % savings),
- the latency is reduced,
- and costs are reduced because fewer complex components are required.
This technology is particularly attractive for AI data centers in which short distances (e.g. between GPUs in a rack) need to be bridged.
Companies such as MACOM, Broadcom, Marvell, InnoLight and Coherent are actively developing components for LPO modules (drivers, TIAs, lasers, etc.). MACOM is the leader in analog front-end chips, which make LPO technology possible in the first place.
The business figures will be published on November 6. It will be exciting to see whether the old ATH of $152 can be sustainably surpassed.