MaxLinear: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Oct. 22, 2026, MaxLinear (NASDAQ:MXL) raised its 2026 optical data center revenue forecast to a range between $250 million and $270 million. Artificial intelligence (AI) infrastructure demand is shifting the business away from legacy broadband markets toward high-speed optical chips. Three takeaways from management explain how this product shift impacts long-term strategy.

1. Data Center Optical Demand Lifted Infrastructure Revenue

Infrastructure sales increased 210% year over year, becoming larger than all other business units combined. Management increased its full-year optical data center outlook as customer orders extended well past 2027.

Reflecting this momentum, we are raising our 26 optical data server revenue outlook to $250 million to $270 million. With strong visibility in bookings extending beyond 2027, we expect another significant step up in revenue next year.
-- Kishore Seendripu, Chief Executive Officer

2. Next-Generation Speed Upgrades Double Content Value

MaxLinear is transitioning customers from 800-gigabit chips to 1.6-terabit speed architectures. Combining digital signal processor (DSP) chips with newly attached transimpedance amplifier (TIA) chips doubles average selling prices per module.

So the ASP on the DSP is more or less doubling, and then we have TIA that we did not add before. So all in all, we will we will be growing more than 2x on the ASP number.
-- Kishore Seendripu, Chief Executive Officer

3. Order Visibility Extends Into 2028 as Customers Reserve Supply

Long manufacturing lead times forced cloud providers to book orders years in advance to lock in production. MaxLinear expanded its revolving credit line to $200 million to fund foundry wafer prepayments needed for this backlog.

You know, we are booking products throughout 2027 into 2028. You know, lead times for optical products are, you know, 26, 28 weeks. But customers are certainly coming in and placing orders out much further than that just kind of given they wanna secure supply.
-- Steven G. Litchfield, Chief Financial Officer and Chief Corporate Strategy Officer

Looking Ahead

High-speed optical shipments are accelerating across cloud data centers. MaxLinear expanded its credit facility by $70 million to support cash prepayments for wafer manufacturing capacity.

In summary, our quarterly performance highlights the continued strength of our optical product portfolio and the accelerating momentum across several growth drivers within our infrastructure business.
-- Steven G. Litchfield, Chief Financial Officer and Chief Corporate Strategy Officer

Long-term value relies on expanding silicon content within server racks while taking market share in next-generation 1.6-terabit optical networks.

Our strategy is focused on strengthening our in high-speed data center connectivity, expanding into adjacent infrastructure markets, and increasing our content share and strategic relevance with hyperscaler customers.
-- Kishore Seendripu, Chief Executive Officer

The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.