With a 76% Post-Earnings Rally, MaxLinear May Have Just Become the Top AI Infrastructure Stock to Buy

MaxLinear (MXL) is facing “supply constraints” as it looks to keep up with the demand from large cloud-infrastructure companies for its Keystone platform. This product helps connect GPU chips, which produce AI, to each other in data centers. With the cloud giants, also known as hyperscalers, launching many new, AI-oriented data centers, the demand for this offering is rising very quickly.

Largely as a result of this trend, MaxLinear provided second-quarter revenue guidance of $160 million to $170 million, well above the $137.2 million of sales that it generated in Q1. Moreover, last quarter, the revenue obtained by its infrastructure business, which includes Keystone, soared 136% versus the same period a year earlier. These superb numbers produced a 76% rally by MXL stock in the wake of the news.