MaxLinear Q3 revenue jumps 72% on AI data center demand

Overview

• U.S. chipmaker's Q3 revenue rose 72% yr/yr, beating analyst expectations

• Adjusted EPS for Q3 rose sharply from a year ago

• Infrastructure revenue surged 210% yr/yr on AI data center demand

Outlook

• MaxLinear sees Q4 revenue between $240 mln and $260 mln

• Company expects Q4 non-GAAP gross margin of 59.0% to 62.0%

• MaxLinear projects Q4 non-GAAP operating expenses of $65 mln to $70 mln

Result Drivers

• AI DATA CENTER DEMAND - Infrastructure revenue surged due to accelerated adoption of optical AI data center products and ramp of Keystone PAM4 DSP platform

• INFRASTRUCTURE GROWTH - Co attributed overall revenue growth to strong performance in AI datacenter-centric infrastructure

• NEW PRODUCTS - Co said new product introductions expanded its footprint

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for MaxLinear, Inc. is $100.00, about 31.9% above its October 21 closing price of $75.79

• The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 79 three months ago

Reuters Recommended Reads

• Oct 22 - TTM Technologies Q3 revenue jumps 60%, beats expectations on data center market demand

• Oct 21 - Super Micro climbs after upbeat forecast shows robust AI demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)