Wednesday, January 23, 2019

MaxLinear Marking Time Ahead Of Game-Changing Product Ramps

As the semiconductor sector has come under pressure, MaxLinear (MXL) has held up okay since the company's "kitchen sink" second quarter and stable third quarter (even if stable at a lower level). Looking into 2019, while MaxLinear has a lot of work to do to repair its reputation and restore confidence in the long-term growth story, the company at least won't be contending with weaker trends in autos or handsets, and the lead-time-related disruption to sales and order trends are likely to be significantly less impactful here than at other chip companies.

The MaxLinear story still rests on believing in a significant revenue ramp in the coming years, driven largely by 5G (RF transceivers and millimeter modems), front-end optical (metro and data center), and data center interconnects. The potential is there, and the share price today still offers upside, but "potential" is a word that can lose you a lot of money if it's not followed by execution.

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MaxLinear Marking Time Ahead Of Game-Changing Product Ramps

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