Here is Why MaxLinear (MXL) is One of the Small-Cap Stocks That Are On Fire Right Now

MaxLinear Inc. (NASDAQ:MXL) is one of the small-cap stocks that are on fire right now. On April 23, MaxLinear reported Q1 2026 net revenue of $137.2 million, representing a 43% increase year-over-year. This growth was driven by an inflection in the company’s infrastructure business, which surged 136% compared to the prior year. On a non-GAAP basis, the company achieved a gross margin of 59.5% and diluted EPS of $0.22, a notable improvement from the loss of $0.05 per share reported in Q1 2025.

Management attributed this performance to accelerating momentum in optical data center connectivity, particularly for AI-driven hyperscale platforms. Looking ahead, the company provided an optimistic outlook for Q2 2026, projecting net revenue to rise to between $160 and $170 million, marking what management describes as a step-function increase in their optical business.

Here is Why MaxLinear (MXL) is One of the Small-Cap Stocks That Are On Fire Right Now

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Additionally, MaxLinear Inc. (NASDAQ:MXL) announced an amendment to its credit agreement with Wells Fargo, extending the maturity of its revolving credit facility to March 2028. The amendment also increased the available facility amount by $30 million, bringing the total capacity to $130 million. While the facility remains undrawn, the extension and increased capacity provide the company with enhanced financial flexibility as it enters what it describes as a multi-year growth phase.

MaxLinear Inc. (NASDAQ:MXL) provides communications systems-on-chip solutions in the US, Asia, Europe, and internationally. It serves electronics distributors, module makers, OEMs, and original design manufacturers.

While we acknowledge the risk and potential of MXL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MXL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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