Key Highlights

  • MACOM Technology Solutions jumped on Friday, building on a Thursday rally, grouped with Texas Instruments, Semtech, Amkor Technology and Teradyne among chip stocks rising after the weak payrolls data.
  • The company designs analog, radio-frequency, microwave and optical semiconductors used in optical networking equipment for data centers, telecom infrastructure, industrial gear and defense systems such as radar.
  • Sector peer Semtech jumped to a 52-week high of $201.24 after Oppenheimer lifted its price target to $225 from $200, citing strong Demand across artificial intelligence data centers.
  • Not every tech stock joined the rally: Seagate and Western Digital tumbled after a report said Toshiba plans to double its hard-drive production capacity, a reminder that AI hardware stocks can move sharply on Supply news.

MACOM Technology Solutions built on Thursday's gains as a weak jobs report sent semiconductor stocks sharply higher. The S&P MidCap 400 chipmaker, which had already rallied on Thursday, jumped again on Friday as semiconductor stocks led Wall Street higher on a disappointing September jobs report. NASDAQ:MTSI was one of five chip stocks highlighted as rising after the payrolls data, together with Texas Instruments, Semtech, Amkor Technology and Teradyne. The weak report pulled Treasury yields and rate-hike odds lower, which helped growth-oriented sectors such as semiconductors. No MACOM-specific announcement was found. Reports differed on the size of the move, with a later tally showing the stock up even more than the intraday figure.

What MACOM Does

MACOM designs analog, radio-frequency, microwave and optical semiconductors. Its chips sit inside optical networking equipment for data centers, telecom infrastructure, industrial gear and defense systems such as radar.

The data-center piece has drawn the most attention lately. As AI clusters grow, they need faster optical links to shuttle data between thousands of processors, and companies that make the components for those links have been rewarded by investors.

A Sector on Fire

Friday was a big day for chips. Teradyne finished as the top gainer in the S&P 500. Nvidia hit a record high during the session after Morgan Stanley named it its top semiconductor pick. Arm Holdings, Monolithic Power Systems, Microchip Technology and Texas Instruments all ranked among the Nasdaq-100's best performers.

Semtech, another name in the group, jumped to a 52-week high of $201.24. Oppenheimer had lifted its price target on Semtech to $225 from $200, citing strong demand across artificial intelligence data centers. That analyst view applies to Semtech, but it captures the theme that has been lifting MACOM and other networking-chip makers.

The Nasdaq-100 set a record close at 30,807.93, while the Nasdaq Composite gained 319.27 points to 27,190.86 after touching an intraday all-time high.

Not every tech stock joined in. Seagate and Western Digital tumbled after a report said Toshiba plans to double its hard-drive production capacity, a reminder that AI hardware stocks can move sharply on supply news.

Why Rates Moved Chips

The Bureau of Labor Statistics said employers added 29,000 jobs in September, far fewer than the roughly 84,000 expected, and revised the prior two months down by a combined 60,000. That eased fears that the Federal Reserve, which hiked on September 16 for the first time since 2023, would raise rates again on October 27-28. Odds of an October hike fell to roughly one in five after the report.

High-growth stocks such as chipmakers tend to benefit when rate expectations fall, because more of their value rests on profits expected years from now.

But the Bond Market threw a curveball. Treasury yields fell right after the report and then reversed to close higher. The 10-year yield ended near its highest level since 2002.

Two-Day Momentum

Thursday's rally followed by Friday's gain gives MACOM strong short-term momentum heading into Earnings season. Stocks that move quickly in both directions on sector news can also pull back fast if sentiment toward AI hardware cools.

ASML's Results Will Ripple Across the Sector

ASML, a bellwether for chip demand, reports in mid-October, and its comments could ripple across the sector. MACOM's own quarterly update will show whether data-center orders are keeping pace with the stock's run. Watch long-term Treasury yields and the Fed's October 27-28 meeting, which remain the key swing factors for high-multiple tech stocks.