Three Underrated Tech Stocks Outperform Nasdaq
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Fool
- Iren Contract Signing: Iren secured a five-year deal worth $9.7 billion with Microsoft for 200 megawatts of capacity, highlighting strong demand in the AI data center market and expected to significantly boost revenue and market position.
- MaxLinear Growth Momentum: MaxLinear reported a 43% year-over-year revenue increase in Q1, with its infrastructure segment growing 35%, and CEO forecasts profitability by 2026, indicating its crucial role and growth potential in AI infrastructure.
- Innodata Customer Diversification: Innodata announced a new contract with a major tech company expected to generate $51 million in revenue this year, contributing to a 54% year-over-year increase in Q1 revenue, showcasing success in diversifying its customer base.
- Market Expansion Strategy: Iren recently entered European markets and plans to expand into the Asia-Pacific region, while MaxLinear and Innodata are also enhancing their market shares, indicating their significance and growth potential in the global AI ecosystem.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy MXL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on MXL
Wall Street analysts forecast MXL stock price to fall
7 Analyst Rating
3 Buy
4 Hold
0 Sell
Moderate Buy
Current: 96.120
Low
18.00
Averages
20.83
High
25.00
Current: 96.120
Low
18.00
Averages
20.83
High
25.00
About MXL
MaxLinear, Inc. is a provider of radio frequency (RF), analog, digital and mixed-signal integrated circuits for access and connectivity, wired and wireless infrastructure, and industrial and multi-market applications. It is engaged in providing communications systems-on-chip (SoCs), used in broadband, mobile and wireline infrastructure, data center, and industrial and multi-market applications. Its customers include electronics distributors, module makers, original equipment manufacturers, and original design manufacturers, who incorporate its products in a range of electronic devices, such as radio transceivers and modems for 4G/5G base-station and backhaul infrastructure; optical transceivers targeting hyperscale data centers; Wi-Fi and wireline routers for home networking; broadband modems compliant with data over cable service interface specifications, passive optical fiber standards, and digital subscriber line; as well as power management and interface products used in markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
MaxLinear and GCT Semiconductor Form Strategic Partnership for 5G Solutions
- Strategic Partnership: MaxLinear and GCT Semiconductor have announced a strategic partnership aimed at developing integrated 5G fixed wireless access and converged gateway solutions to cater to consumer and enterprise markets.
- Technological Integration: This collaboration combines MaxLinear's Wi-Fi and network processing technologies with GCT's 5G/LTE cellular modem solutions, creating a pre-integrated AnyWAN platform designed for seamless switching between fiber, cable, and cellular WAN connections.
- Cost Optimization Benefits: The companies stated that this integration will help OEMs reduce deployment costs and accelerate the development of cost-optimized FWA gateways, thereby enhancing market competitiveness and product delivery efficiency.
- Positive Market Reaction: GCT Semiconductor's shares rose 5% in premarket trading, reflecting market optimism regarding this partnership, which could drive future sales growth and increase market share.
See More
Small-Cap Tech Stocks Surge Amid AI Frenzy
- Small-Cap Tech Recovery: U.S. small-cap technology stocks are rebounding significantly after years of underperformance, driven by the AI frenzy that has led investors to focus on smaller companies with strong potential, as evidenced by $49.7 million inflows into the Invesco S&P SmallCap Information Tech ETF this year, ending four consecutive years of outflows.
- Earnings Growth Expectations: Small-cap semiconductor companies are among the top performers, expected to see nearly 40% profit growth in Q2, reflecting massive capital spending on data centers and AI-related infrastructure boosting chip demand, although the broader small-cap tech sector is projected to grow earnings by only 7%.
- Market Performance Disparity: The S&P 600 small-cap tech index has surged nearly 54% this year, compared to a 20.1% rise in the S&P 500 tech index, marking the widest gap since 1995, indicating a relative advantage for small-cap stocks amid the AI investment boom.
- Bubble Risk Warning: Despite the strong performance of small-cap tech stocks, analysts caution that speculative trading may be driving prices higher, and rising global government bond yields could diminish the appeal of smaller tech companies due to their higher sensitivity to economic fluctuations.
See More
MaxLinear Partners with Edgecore for AI Networking Solutions
- AI Networking Collaboration: MaxLinear has partnered with Edgecore Networks to combine MaxLinear's internet and Wi-Fi technology with Edgecore's networking systems, aiming to support faster and more reliable AI workloads, which is expected to significantly enhance network performance for businesses and service providers.
- Technology Integration Benefits: MaxLinear's platform offers speeds of up to 10 Gbps with built-in security features to manage the rising demand for AI and data usage more efficiently, while Edgecore will integrate its OpenWiFi, switching, and Edge AI Box platforms to further improve edge computing services.
- Market Growth Potential: The edge networking market is projected to grow by 7%-11% annually as demand for AI and data increases, presenting substantial market opportunities for the collaboration between MaxLinear and Edgecore, which could drive business growth for both companies.
- Positive Stock Reaction: Following the announcement of the partnership, MaxLinear's stock rose approximately 8% in premarket trading, increasing from $99.16 to around $106.50, reflecting positive market expectations and enhanced investor confidence in the collaboration.
See More
MaxLinear and Edgecore Form Strategic Partnership for AI-Driven Networking
- Strategic Partnership: MaxLinear and Edgecore Networks have announced a strategic partnership aimed at accelerating the development of AI-driven networking solutions to meet the demands of enterprise and service provider markets, which is expected to drive innovation in high-availability and intelligent edge network infrastructure.
- Technology Integration: MaxLinear's multi-interface WAN solutions platform supports sustained throughput of 10Gbps, and when combined with Edgecore's open networking systems, it meets the performance requirements of data-intensive applications, thereby enhancing network reliability and security.
- Market Outlook: The enterprise campus and edge networking market is projected to grow at an annual rate of approximately 7%-11%, driven by increasing data demands and device proliferation, providing a broad market opportunity for the collaboration between MaxLinear and Edgecore.
- Product Showcase: MaxLinear will showcase its high-availability security gateway at Computex Taipei 2026, further demonstrating its technological strength in AI and high-speed connectivity, which is expected to attract more enterprise customers' attention.
See More
Iren Expands Gigawatt Pipeline with Mirantis Acquisition
- Major Deal Secured: Iren has signed a five-year agreement worth $9.7 billion with Microsoft to provide 200 megawatts of capacity, which not only strengthens its position in the AI data center market but also sets the stage for higher-margin deals in the future.
- Acquisition Boosts Growth: The acquisition of software company Mirantis by Iren aims to enhance customer attraction and secure higher margins in the long run, further solidifying its competitive edge in the AI infrastructure sector.
- Revenue Forecast Raised: Iren anticipates achieving $3.7 billion in annual recurring revenue by year-end, indicating strong momentum in the market, especially as its 5-gigawatt pipeline becomes operational.
- Market Expansion Strategy: Iren's recent entry into the European market and plans to expand into the Asia-Pacific region demonstrate the implementation of its globalization strategy, aiming to leverage the growing demand for AI data centers to drive future business growth.
See More
Three Underrated Tech Stocks Outperform Nasdaq
- Iren Contract Signing: Iren secured a five-year deal worth $9.7 billion with Microsoft for 200 megawatts of capacity, highlighting strong demand in the AI data center market and expected to significantly boost revenue and market position.
- MaxLinear Growth Momentum: MaxLinear reported a 43% year-over-year revenue increase in Q1, with its infrastructure segment growing 35%, and CEO forecasts profitability by 2026, indicating its crucial role and growth potential in AI infrastructure.
- Innodata Customer Diversification: Innodata announced a new contract with a major tech company expected to generate $51 million in revenue this year, contributing to a 54% year-over-year increase in Q1 revenue, showcasing success in diversifying its customer base.
- Market Expansion Strategy: Iren recently entered European markets and plans to expand into the Asia-Pacific region, while MaxLinear and Innodata are also enhancing their market shares, indicating their significance and growth potential in the global AI ecosystem.
See More
MaxLinear and GCT Semiconductor Form Strategic Partnership for 5G Solutions
- Strategic Partnership: MaxLinear and GCT Semiconductor have announced a strategic partnership aimed at developing integrated 5G fixed wireless access and converged gateway solutions to cater to consumer and enterprise markets.
- Technological Integration: This collaboration combines MaxLinear's Wi-Fi and network processing technologies with GCT's 5G/LTE cellular modem solutions, creating a pre-integrated AnyWAN platform designed for seamless switching between fiber, cable, and cellular WAN connections.
- Cost Optimization Benefits: The companies stated that this integration will help OEMs reduce deployment costs and accelerate the development of cost-optimized FWA gateways, thereby enhancing market competitiveness and product delivery efficiency.
- Positive Market Reaction: GCT Semiconductor's shares rose 5% in premarket trading, reflecting market optimism regarding this partnership, which could drive future sales growth and increase market share.
See More
Small-Cap Tech Stocks Surge Amid AI Frenzy
- Small-Cap Tech Recovery: U.S. small-cap technology stocks are rebounding significantly after years of underperformance, driven by the AI frenzy that has led investors to focus on smaller companies with strong potential, as evidenced by $49.7 million inflows into the Invesco S&P SmallCap Information Tech ETF this year, ending four consecutive years of outflows.
- Earnings Growth Expectations: Small-cap semiconductor companies are among the top performers, expected to see nearly 40% profit growth in Q2, reflecting massive capital spending on data centers and AI-related infrastructure boosting chip demand, although the broader small-cap tech sector is projected to grow earnings by only 7%.
- Market Performance Disparity: The S&P 600 small-cap tech index has surged nearly 54% this year, compared to a 20.1% rise in the S&P 500 tech index, marking the widest gap since 1995, indicating a relative advantage for small-cap stocks amid the AI investment boom.
- Bubble Risk Warning: Despite the strong performance of small-cap tech stocks, analysts caution that speculative trading may be driving prices higher, and rising global government bond yields could diminish the appeal of smaller tech companies due to their higher sensitivity to economic fluctuations.
See More
MaxLinear Partners with Edgecore for AI Networking Solutions
- AI Networking Collaboration: MaxLinear has partnered with Edgecore Networks to combine MaxLinear's internet and Wi-Fi technology with Edgecore's networking systems, aiming to support faster and more reliable AI workloads, which is expected to significantly enhance network performance for businesses and service providers.
- Technology Integration Benefits: MaxLinear's platform offers speeds of up to 10 Gbps with built-in security features to manage the rising demand for AI and data usage more efficiently, while Edgecore will integrate its OpenWiFi, switching, and Edge AI Box platforms to further improve edge computing services.
- Market Growth Potential: The edge networking market is projected to grow by 7%-11% annually as demand for AI and data increases, presenting substantial market opportunities for the collaboration between MaxLinear and Edgecore, which could drive business growth for both companies.
- Positive Stock Reaction: Following the announcement of the partnership, MaxLinear's stock rose approximately 8% in premarket trading, increasing from $99.16 to around $106.50, reflecting positive market expectations and enhanced investor confidence in the collaboration.
See More
MaxLinear and Edgecore Form Strategic Partnership for AI-Driven Networking
- Strategic Partnership: MaxLinear and Edgecore Networks have announced a strategic partnership aimed at accelerating the development of AI-driven networking solutions to meet the demands of enterprise and service provider markets, which is expected to drive innovation in high-availability and intelligent edge network infrastructure.
- Technology Integration: MaxLinear's multi-interface WAN solutions platform supports sustained throughput of 10Gbps, and when combined with Edgecore's open networking systems, it meets the performance requirements of data-intensive applications, thereby enhancing network reliability and security.
- Market Outlook: The enterprise campus and edge networking market is projected to grow at an annual rate of approximately 7%-11%, driven by increasing data demands and device proliferation, providing a broad market opportunity for the collaboration between MaxLinear and Edgecore.
- Product Showcase: MaxLinear will showcase its high-availability security gateway at Computex Taipei 2026, further demonstrating its technological strength in AI and high-speed connectivity, which is expected to attract more enterprise customers' attention.
See More
Iren Expands Gigawatt Pipeline with Mirantis Acquisition
- Major Deal Secured: Iren has signed a five-year agreement worth $9.7 billion with Microsoft to provide 200 megawatts of capacity, which not only strengthens its position in the AI data center market but also sets the stage for higher-margin deals in the future.
- Acquisition Boosts Growth: The acquisition of software company Mirantis by Iren aims to enhance customer attraction and secure higher margins in the long run, further solidifying its competitive edge in the AI infrastructure sector.
- Revenue Forecast Raised: Iren anticipates achieving $3.7 billion in annual recurring revenue by year-end, indicating strong momentum in the market, especially as its 5-gigawatt pipeline becomes operational.
- Market Expansion Strategy: Iren's recent entry into the European market and plans to expand into the Asia-Pacific region demonstrate the implementation of its globalization strategy, aiming to leverage the growing demand for AI data centers to drive future business growth.
See More
Three Underrated Tech Stocks Outperform Nasdaq
- Iren Contract Signing: Iren secured a five-year deal worth $9.7 billion with Microsoft for 200 megawatts of capacity, highlighting strong demand in the AI data center market and expected to significantly boost revenue and market position.
- MaxLinear Growth Momentum: MaxLinear reported a 43% year-over-year revenue increase in Q1, with its infrastructure segment growing 35%, and CEO forecasts profitability by 2026, indicating its crucial role and growth potential in AI infrastructure.
- Innodata Customer Diversification: Innodata announced a new contract with a major tech company expected to generate $51 million in revenue this year, contributing to a 54% year-over-year increase in Q1 revenue, showcasing success in diversifying its customer base.
- Market Expansion Strategy: Iren recently entered European markets and plans to expand into the Asia-Pacific region, while MaxLinear and Innodata are also enhancing their market shares, indicating their significance and growth potential in the global AI ecosystem.
See More
