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MACOM (MTSI) Strengthens Portfolio With CLEAR DIAMOND LASERS

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MACOM Technology Solutions Inc. (MTSI - Free Report) has made the production release of CLEAR DIAMOND LASERS, its new high-speed laser portfolio.

The portfolio includes more than 50 products that are based on a new single ridge design, which enhances optical performance.

Moreover, the products leverage the company’s Etched Facet Technology, and wafer-scale Indium Phosphide manufacturing capabilities to support 5G wireless infrastructure as well as cloud data center.

The latest move is expected to drive MACOM’s performance in telecommunication and data center end markets, from which it generated 28% and 24% of total revenues in fiscal second-quarter 2021, respectively.

Prospects

Notably, the underlined portfolio supports multiple applications for data center networks including 200G FR4, 100G CWDM4 and LR4.

Hence, MACOM remains well positioned to capitalize on the immense prospects present in the booming data center market, which, per a report by arizton, is expected to hit $251 billion by 2026, registering a CAGR of 4.5% during the period of 2021-2026.

Further, the latest move is likely to help the company in rapidly penetrating into the telecommunication market, which, per the Grand View Research report, is anticipated to witness a CAGR of 5.4% between 2021 and 2028.

Also, MACOM’s new portfolio supports various global 5G infrastructure applications comprising 1310 BiDi, CWDM6, MWDM12, LWDM12, DWDM16 and 50Gbps PAM4.

Thus, the company is well poised to strengthen its presence in the growing 5G infrastructure market, which, per a report by Grand View Research, is expected to witness a CAGR of 59.6% during the period of 2020-2027.

Portfolio Strength

The latest move bodes well for MACOM’s growing focus toward strengthening the product portfolio.

This apart, the company — in collaboration with Modelithics — introduced its new GaN Product Model Library. The models are suitable for high-power microwave applications.

In addition, MACOM introduced a new high voltage capacitor semiconductor process, which is suitable for non-commodity applications in automotive renewable energy, industrial, medical and defense systems markets.

The company’s robust product portfolio comprising amplifiers, optical components, diodes, network connectivity solutions and other products will continue to shape its growth trajectory and sustain momentum in various end markets.

Zacks Rank & Other Stocks to Consider

Currently, MACOM carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the broader technology sector include Microchip Technology Incorporated (MCHP - Free Report) , MaxLinear, Inc. (MXL - Free Report) and Monolithic Power Systems, Inc. (MPWR - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rates for Microchip, MaxLinear, and Monolithic Power are currently projected at 15.3%, 20% and 25%, respectively.

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