MaxLinear Could Hit 5-Year Targets This Year - It's Growing That Fast

Uttam Dey 7.47K Followers Follow Summary MaxLinear is experiencing explosive growth in its Infrastructure segment, driven by surging demand for optical connectivity in AI data centers. MXL is on track to surpass its $500M Infrastructure revenue target well ahead of its original 2028 timeline, with segment CAGR at 25-26%. Gross margins are expanding rapidly, expected to reach 60% in Q3, supported by leaner inventory and robust demand for 400G/800G and 1.6T networking products. MXL’s valuation remains attractive at 7-8x revenue, with consensus underestimating growth; I am initiating coverage with a bullish outlook. asbe/iStock via Getty Images Investment Thesis In late 2023, MaxLinear ( MXL ) had issued ambitious targets to achieve a $500M revenue run rate for its data center Infrastructure segment. Nearly three years have passed since, and the company has seen such This article was written by Uttam Dey 7.47K Followers Follow Uttam is a growth-oriented investment analyst whose equity research primarily focuses on the technology sector. Semiconductors, Artificial Intelligence and Cloud software are some of the key sectors that are regularly researched and published by him. His research also focuses on other areas such as MedTech, Defense Tech, and Renewable Energy. In addition, Uttam also authors The Pragmatic Optimist Newsletter along with his wife, Amrita Roy, who is also an author on the newsletter as well as on this platform. Their newsletter gets regularly cited by leading publications such as the Wall Street Journal, Forbes, etc. Prior to publishing his research, Uttam worked in Silicon Valley, leading teams for some of the largest technology firms in the world, including Apple and Google. Analyst’s Disclosure: I/we have a beneficial long position in the shares of MXL, MRVL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.