This Chipmaker is Down 50%; Analysts Think It’s a ‘Buy’

MaxLinear [MXL] is a fabless semiconductor company that designs and sells communication chips used in data centres, telecommunications networks, industrial equipment and broadband modems.

The company has historically served the broadband access and wireless communications markets, but has expanded into artificial intelligence (AI) infrastructure by developing optical interconnect solutions that connect servers within data centres.

MXL’s foray into AI infrastructure has paid off. Net revenue has increased nearly 50% year-on-year in the first half of 2026, while the MXL share price has surged over 228% year-to-date, as of 29 July.^[1]

However, the rally has also raised expectations. Investors are now scrutinising whether MaxLinear can sustain its growth, with concerns emerging over profitability, valuation and its ability to capture a larger share of the AI infrastructure opportunity.

MXL shares corrected over 55% from an all-time high price of $128.30 reached on 30 June to $57.25, as of 29 July. The sharp correction, which came despite the company reporting Q2 earnings above Wall Street expectations, suggests investors are questioning how much upside is left.

Whether MXL can resume its rally will depend on AI infrastructure spending, product launches and market demand, all of which we explore in this article.