MXL

I am reiterating my Strong Buy rating on MaxLinear with a revised price target of $111 per share. The post-earnings sell-off appears to be driven more by valuation compression, the broader Semi industry, and profit taking than by a deterioration in the company's AI connectivity opportunity. I am keeping my 2028 non-GAAP EPS estimate at $2.78 because several newer products are still in qualification, while higher dilution and operating expenses offset part of the stronger near-term.

MXL's AI infrastructure surge, led by Keystone and hyperscale optical demand, lifts its outlook as competition and a premium valuation loom.

MaxLinear is rated 'Buy' after a 21% post-earnings drop, which I view as overblown given strong fundamentals and guidance. MXL's infrastructure segment is inflecting, with 145% YoY growth and new products ramping for AI and data center applications, supporting accelerating revenue into 2026–2027. Management raised FY2026 optical data center revenue guidance to $210–230 million and expects GAAP gross margins at 60%, above the 10-year average.

MXL's Q2 earnings beat estimates as revenues jump 55%, fueled by optical AI data center adoption and a 145% surge in infrastructure sales.

MaxLinear spotlights accelerating optical AI data center growth, raising its outlook as new products, customer engagements and infrastructure ramps drive momentum.

MaxLinear, Inc. (MXL) Q2 2026 Earnings Call Transcript

CARLSBAD, Calif.--(BUSINESS WIRE)--MaxLinear announces second quarter 2026 financial results.

MXL heads into Q2 earnings with AI optical momentum and recovering broadband demand, but rising costs, forex pressure and supply constraints loom.

Applied Optoelectronics is seeing strong AI data center demand, but MaxLinear's broader product momentum, hyperscaler adoption, and earnings consistency give it an edge.

MaxLinear's 31% pullback tests whether booming AI data-center demand can outweigh supply constraints, rising costs and a stretched valuation.