MaxLinear (MXL) reported that its infrastructure segment now accounts for more than half of total revenue and is growing at a pace of 150% to 170% year over year, driven by demand for high-speed data center interconnect products.
The company provided a detailed product roadmap during its presentation at Citi's 2026 Global TMT Conference on September 9. Its 400G optical products are nearing end-of-life and expected to slow in 2027, while 800G offerings continue to grow through 2026 and into next year. The current product mix stands at 70% 800G and 30% 400G.
MaxLinear's 1.6T product, internally codenamed Rushmore, is currently in customer qualification and is expected to reach the market in mid-2026 before moving to full-scale production in 2027. A 3.2T product known as Big Sky remains in development. The company's Panther storage accelerator line generated $15 million to $20 million in annual revenue and is expected to double in 2026 and again in 2027.
On the financial side, MaxLinear has raised its full-year optical business guidance three consecutive quarters, now setting a midpoint of $220 million, up from an initial outlook north of $100 million. The company forecasts fiscal 2026 earnings of $1.87 per share. Shares traded at $70.97, giving the company a market capitalization of $6.44 billion. The stock has surged 314% over the past year and 282% year to date.
Gross margins came in at 57.48% for the trailing twelve months through Q2 2026. Management said it is targeting 60% gross margin for the current year and 65% long term, noting that margins previously ran in the low-to-mid 60% range and only dipped to 58% during the prior cycle low.
Average selling prices for 800G products range from $35 to $50 per unit, while 1.6T ASPs are in the $80 to $100 range, with total system value exceeding $100 when TIA costs are included. Pricing remains firm with no major declines anticipated through the end of 2026.
Lead times for optical products are steady at 26 to 28 weeks. For 1.6T production, MaxLinear has added Samsung alongside existing foundry relationships with TSMC and historical work with UMC to provide supply chain diversity. The company's 800G solution consumes approximately 20% less power than comparable products from its two main competitors.
MaxLinear currently holds 5% to 7% of the relevant market and aims to reach 20% to 25% over the next two to three years. Its Panther technology has attracted AMD, which has established a reference design and provides customer referrals for the storage accelerator as an alternative to Intel's QAT software approach.
