MaxLinear: The AI Optical Ramp Is Rewriting The Earnings Story

MaxLinear is rebuilding its earnings base through a strong optical DSP ramp, broadening customer base, and rising operating margins. MXL's Infrastructure revenue surged 210% YoY in Q3 FY2026, driven by Keystone 800G DSP shipments and robust demand from hyperscalers. I rate MXL a Buy, justifying the P/E premium with compounding earnings and a sector-low PEG, despite cash burn and lack of long-term commitments.