MaxLinear Shares Soar on Rising 1Q Revenue From Growing Data-Center Demand

Dow Jones04-24 23:40

By Elias Schisgall

 

Shares of MaxLinear soared after the company reported accelerating revenue growth in the first quarter and said demand from the worldwide buildout of artificial-intelligence data centers would continue to boost revenue in the second quarter.

The stock climbed 80% to $61.52 in Friday morning trading, after hitting a three-year high of $63.52 earlier in the session. Shares have risen more than three fold in price this year.

The semiconductor company on Thursday posted a loss of $45.1 million, or 52 cents a share, compared with a loss of $49.7 million, or 58 cents a share, a year earlier.

Stripping out certain one-time items, the company logged adjusted earnings of 22 cents a share, ahead of the 18 cents a share analysts were expecting, according to FactSet.

Revenue rose to $137.2 million, up from $95.9 million a year prior. Analysts were expecting $134.6 million in revenue, according to FactSet.

That growth was driven by accelerating adoption of new products, especially in the infrastructure category, where demand from customers building data-centers boosted revenue 136% year-over-year, Chief Executive Officer Kishore Seendripu said on a call with analysts.

The company has seen particular momentum with its Keystone PAM4 DSP optical transceiver platform, which has ramped up at several high-scale customers in the U.S. and Asia, Seendripu said. Other products have also sold well to data center customers.

"We see this momentum continuing to build as hyperscale customers rapidly scale AI-centric architectures," Seendripu said. "We also expect a step function data center revenue increase beginning in Q2, with expected strong upside as run rates expand into 2027."

For the current second quarter, the company said it expects revenue between $160 million and $170 million, with a gross margin between 56% and 59%. Analysts had been expecting $137.2 million in revenue prior to the earnings release.

The company also said it extended the maturity date of its credit agreement with Wells Fargo and other lenders to March 2028, from June 2026. The size of the facility, which has not yet been drawn down, was also increased by $30 million to $130 million.

 

Write to Elias Schisgall at elias.schisgall@wsj.com

 

(END) Dow Jones Newswires

April 24, 2026 11:40 ET (15:40 GMT)

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