MACOM Stock Plunges 8.11% Despite 32.3% Revenue Growth Hits 383rd in $310M Trading Volume Surge

On August 7, 2025, MACOM Technology Solutions (MTSI) closed with an 8.11% decline, despite reporting a 32.3% year-over-year revenue increase in Q3 FY2025. The stock saw a surge in trading activity, with a $310 million volume—a 118.25% rise from the previous day—ranking 383rd in market liquidity. The company’s non-GAAP earnings per share matched estimates at $0.90, while gross margins stabilized at 57.6%, reflecting ongoing integration challenges and manufacturing complexities.

The earnings report highlighted strong demand in data center and defense segments, driven by high-speed optical amplifiers and gallium nitride (GaN) semiconductor advancements. Management projected modest growth for Q4, with revenue guidance of $256–$264 million. However, the stock’s sharp decline suggests investor skepticism about margin sustainability amid rising operating expenses and delayed benefits from the Wolfspeed RF fab integration. Defense and telecom markets showed resilience, but industrial sectors faced inventory and demand headwinds.

A backtest of a high-volume stock strategy from 2022 to the present revealed a 166.71% return, outperforming the benchmark by 137.53%. This underscores liquidity concentration’s role in short-term performance, particularly in volatile markets where high-volume equities can capitalize on macroeconomic shifts and investor behavior. The strategy’s effectiveness aligns with MACOM’s recent trading pattern, though its long-term viability depends on market conditions and risk tolerance.