MaxLinear at Citi’s 2026 Global TMT Conference: data center growth builds

On September 9, 2026, MaxLinear (MXL) showcased its growing data center infrastructure at Citi's Global TMT Conference. CFO Steve Litchfield highlighted the company's strong demand in optical networking and broader customer interest, while acknowledging the impact of wafer-cost pressure and evolving technology. MaxLinear's infrastructure business now accounts for more than 50% of revenue and is expanding at a 150% to 170% pace this year.

The optical data center segment has raised its guidance for three straight quarters, with a midpoint sales guidance of $220 million. Management envisions expanding market share from around 5% to 7% to 20% to 25% over the next two to three years. The company has introduced new products like 1.6T Rushmore, 3.2T Big Sky, and updated Panther accelerators to fuel future growth.

Gross margin is moving towards 60% this year, with a long-term goal of 65%, driven by a richer product mix. The optical data center business was a key contributor to recent momentum, with guidance raised in three consecutive quarters, now at $220 million. MaxLinear's stock has delivered a 314% return over the past year, trading at $70.97 and giving the company a market capitalization of $6.44 billion.

The product mix consists of 70% 800G and 30% 400G, with 1.6T products expected to have average selling prices of $80 to $100. Gross margin remains a priority, with the company aiming for 60% this year and 65% long-term. Currently at 57.48%, gross profit margin is below the historical low of 58%. Management attributes margin expansion to a shift towards higher-margin infrastructure products and passing input-cost increases to customers.

MaxLinear's infrastructure business now makes up more than half of total revenue, expected to grow 150% to 170% this year. The company is in the early stages of share gains. For the optical side, the company plans to transition across speed generations, with 800G growing well in 2026 and launching 1.6T in mid-2026. Big Sky, a 3.2T product, is in development.

MaxLinear also intends to expand its Panther portfolio, which currently generates $15 million to $20 million in revenue per year. The company is working on new Panther architecture variants based on customer feedback and has partnerships with AMD for reference designs and customer referrals. To tackle supply chain challenges, MaxLinear has shifted its 1.6T production to Samsung alongside TSMC relationships, providing customers with alternative supply chains.

Lead times for optical products are approximately 26 to 28 weeks and have remained relatively consistent. The company utilizes long-term agreements, prepayments, and letters of credit to secure capacity. MaxLinear maintains broad customer engagement, with no single customer dominating its business, and has shifted focus toward module customers, crucial for qualifications, trials, and firmware changes.