MaxLinear Beats on All Fronts with Keystone; Rushmore Ramping in 2027

The strength of MaxLinear’s Q2 results were driven by Keystone, its 800G PAM4 DSP platform, with management raising guidance for data center revenue by $50 million to $220 million at the midpoint. Despite Keystone driving this quarter’s results, Rushmore is already sampling with initial revenue expected in 2027. MaxLinear’s momentum is palpable as total revenue grew 23% QoQ and 55% YoY. Its AI segment, Infrastructure, grew 35% QoQ and 145% YoY. The guidance for Q3 showed unusual strength at 27% QoQ growth and 70% YoY growth for revenue of $215 million. However, the market may be selling the stock on the lack of updated full-year guidance, but that’s a bit hasty given management doesn’t guide more than one quarter out and we will likely see estimates go up in the coming days/weeks.