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Marc Guberti is a Certified Personal Finance Counselor and has been a contributing Motley Fool stock market analyst since 2025. He has written for several finance publications. Marc graduated from Fordham University with a finance degree. He is an avid marathon runner who aims to complete more than 100 marathons in his lifetime. His fastest marathon time is 2:40.
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MaxLinear (MXL 16.50%) has almost quadrupled year to date as more investors pay attention to this artificial intelligence (AI) stock. The company designs semiconductor chips that are the foundation of fiber-optic networks, broadband, and wireless infrastructure.
This technology has become vital for the AI build-out, as a Fiber Broadband Association Research paper found that the U.S. needs 2.3 times more fiber to support AI efforts. That's a great opportunity for MaxLinear, and its fundamentals make the stock even more enticing.
Image source: Getty Images.
Infrastructure is driving MaxLinear's growth
MaxLinear's 43% year-over-year revenue growth in Q1 2026 shows it is gaining momentum in its AI build-out, but its infrastructure numbers offer a clearer view of the company's long-term potential. The infrastructure segment represents MaxLinear's entry into AI data centers, and that part grew by 136% year over year.
NASDAQ: MXL
Key Data Points
The infrastructure segment has become the largest part of MaxLinear's business, and as it continues to grow, it will account for a larger share of total revenue. So, infrastructure has a greater influence on MaxLinear's overall growth.
MaxLinear aims to achieve at least 2x the semiconductor industry growth rate each time it reports quarterly results. The company was close to setting that standard in its Q1 results. MaxLinear reported 43% year-over-year growth, compared with the semiconductor industry's 26% growth rate, as reported by the Semiconductor Industry Association. Advances in the infrastructure segment should help MaxLinear soundly exceed its 2x objective and fuel the current rally.
Guidance implies more growth is on the way
MaxLinear's guidance for its second quarter suggests that the 43% year-over-year revenue surge wasn't a one-time event. The company expects $160 million to $170 million in Q2 2026 revenue, with the midpoint at $165 million, implying 52% year-over-year revenue growth.
The sequential growth looks to be solid in Q2, but part of that is seasonal. The semiconductor industry tends to be a bit slower in Q1, which explains the high sequential growth rate implied in Q2 guidance.
However, investors should be happy to hear that the infrastructure segment delivered 35% sequential growth in Q1, demonstrating some resilience amid what is typically a slower quarter. The business should heat up sequentially in the upcoming quarters, enabling the infrastructure segment to see meaningful sequential revenue growth throughout the year.
As long as tech giants continue to ramp up AI spending, MaxLinear has a pathway to long-term growth and revenue acceleration. Despite almost quadrupling year to date, MaxLinear still has a market cap below $10 billion. It has the potential to grow 10x from current levels if it can sustain its impressive growth rates.