MaxLinear: Why I Am Cutting My Price Target But Keeping A Strong Buy

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. For my updated price target, I am using my 2028 estimated EPS and applying a FWD non-GAAP P/E multiple of 40x. Even after that reduction, the PT still implies 56% upside from the post-earnings share price, while the FWD non-GAAP PEG of 0.42x suggests the stock remains inexpensive relative to its expected earnings growth.

I am reiterating my Strong Buy rating on MaxLinear ( MXL ) even though I am reducing my price target from $196.50 to approximately $111 per share. The stock 's sharp decline