Maxlinear Inc. (NASDAQ:MXL) climbed to a three-month high on Friday, adding 15 percent to close at $105.93 apiece, as investors began positioning portfolios ahead of the release of its earnings performance in the third quarter of the year.
Week on week, the stock rose by 12.88 percent.
The company said in an update on Thursday that it is scheduled to release its financial and operating highlights after market close on October 22, 2026. A conference call will be held for the discussion of results.
For illustration purposes only. Photo by Brett Sayles on Pexels
What to Expect?
Maxlinear Inc. is expected to report year-on-year revenue growth of 66.7 percent to 74.6 percent for the quarter ending September, to a range of $210 million to $220 million from the $126.4 million reported in the same period last year.
Its optimism was based on the strong demand for its optical AI data center business portfolio and roadmap for 1.6T-capable products.
Gross margin, on the other hand, is projected to end at 57 to 60 percent.
In the second quarter alone, Maxlinear Inc. swung to a net income of $1.76 million from a net loss of $26.6 million, while revenues surged by 55 percent to $168.8 million from $108.8 million year-on-year, thanks to robust demand for its products from the artificial intelligence sector.
New Product to Power AI Demands
Late last month, Maxlinear Inc. launched a new unified semiconductor solution that enables broadband operators to deliver D4.0/D3.1+ multi-gigabit services, power Edge AI, personal AI and Wi-Fi 8 connectivity while helping them reduce costs.
Called Puma 9, the semiconductor solution is designed to bring advanced Post-Quantum Cryptography (PQC) security readiness and DDR5 memory compatibility, which could help operators protect their networks against future threats and avoid supply chain risk associated with legacy memory types.
Hedge Fund Conviction Soars
Institutional investors signaled their strong optimism for Maxlinear Inc. in the second quarter of the year, as evidenced by the sevenfold increase in committed capital.
Data from Insider Monkey showed that 39 hedge funds established exposure in the stock during the period, markedly up from only 27 in the first quarter of the year.
More notably, their combined holdings soared by 673 percent to $890.69 million from $115.24 million quarter-on-quarter.
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