Upgrade to Buy#
Roth/MKM has upgraded MaxLinear's stock rating from Neutral to Buy, raising its price target significantly from $18 to $60. Currently, the stock is trading at $34.25, reflecting a remarkable increase of 255% over the past year and a 30% rise in just the last week.
Strong Revenue Growth#
The upgrade follows MaxLinear's recent revenue report, which exceeded analysts' expectations. The company achieved a 30% increase in revenue over the last twelve months. Notably, 10 analysts have also raised their earnings forecasts for the upcoming period, indicating positive momentum in the company's performance.
Participation in AI Infrastructure#
Roth/MKM highlighted that MaxLinear has strong growth visibility over the coming quarters. The firm pointed out that the company is well-positioned to benefit from the growth in artificial intelligence (AI) infrastructure, particularly as XPU clusters—groups of processors—require higher bandwidth connections.
Recent Financial Results#
In its first quarter of fiscal 2026, MaxLinear reported earnings per share of $0.22, surpassing the expected $0.18. The company also generated revenue of $137.2 million, exceeding the anticipated $134.56 million. This strong performance was driven by high demand in the data center sector, especially for optical interconnects. Following these results, Needham upgraded MaxLinear’s stock rating to Buy, while Stifel raised its price target to $49, further emphasizing the company's robust position in the data center market.