MaxLinear (MXL) Wells Fargo 8th Annual TMT Summit summary

Infrastructure business outlook

• Infrastructure segment expected to generate $160–$170 million this year, with growth driven by wireless, optical, and data center products.

• Wireless infrastructure impacted by lower telco spending but anticipated to recover next year.

• Data center segment seeing strong momentum, especially with 800-gig transceivers and DSPs.

• DSP market projected to double in size over the next few years, fueled by AI and data center build-outs.

• Goal to achieve 20–25% market share in data center DSPs, with some opportunities for 30–50% share in large deployments.

Growth drivers and competitive positioning

• Differentiation in data center products centers on power efficiency and advanced 5nm architecture.

• Market share gains expected as larger competitors focus on top-tier customers, leaving room for expansion among tier one and two providers.

• Qualification cycles for new products vary by customer, typically ranging from 2–9 months.

• Once qualified at a major data center, subsequent customer adoption accelerates due to established credibility.

Wireless infrastructure and storage accelerators

• Wireless infrastructure expected to improve in 2025 and 2026, with access and backhaul segments showing signs of recovery.

• New products like Sierra (digital front end) and expanded transceiver offerings are increasing content per deployment.

• Storage accelerators, such as Panther III, offer hardware-based solutions with higher performance than software alternatives, targeting $50–$75 million in revenue over the next two years.