We recently compiled a list of the 10 AI News Updates Trending on Wall Street. In this article, we are going to take a look at where Maxlinear, Inc. (NASDAQ:MXL) stands against the other AI stocks that are trending on Wall Street.
The emerging, cost-effective Chinese AI alternatives have prompted US President Donald Trump to say it is a wake-up call to Silicon Valley. He sees the launch of AI models like DeepSeek r1 and Qwen 2.5 as opportunities rather than threats, given that these innovations can help US companies drive down R&D and deployment costs.
However, the ongoing US earnings season continues to showcase strength in the AI space as companies consistently beat consensus estimates driven by revenues from AI segments.
Semiconductor manufacturers, satellite imagery, IT consultation, and cybersecurity firms continue to heavily integrate AI to reduce operational costs, introduce process transparency, offer global connectivity, and fortify data protection technologies for growth and optimal business productivity.
“The biggest lesson learned is we have to take the unintended consequences of any new technology along with all the benefits and think about them simultaneously – as opposed to waiting for the unintended consequences to show up and then address them,” Microsoft CEO Satya Nadella said at the latest World Economic Forum in Davos. “I don’t think the world will put up anymore with any of us coming up with something where we haven’t thought through safety, equity and trust – these are big issues for the world.”
We selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A scientist in a lab examining a prototype RF chip for broadband radio transceiver front ends.
Maxlinear, Inc. (NASDAQ:MXL)
Number of Hedge Fund Holders: 18
MaxLinear, Inc. (NASDAQ:MXL) is a leading semiconductor firm that designs and builds highly integrated radio-frequency, analog, and mixed-signal chips to enable multi-gig connectivity in broadband communications applications, wired and wireless infrastructure, data centers, and connected home devices. The company’s scalable MaxAI framework uses AI and ML to improve Wi-Fi security and network performance for multi-user applications like gaming, XR, and video conferencing.
On January 30th, Roth MKM increased MaxLinear, Inc.’s (NASDAQ:MXL) target price to $21 from $18 and maintained a “Neutral” stock rating. Analysts said the company posted and guided revenue above consensus at the midpoint, implying continued revenue stability and benefit from the optical demand tailwind. The brokerage added that the company could return to profitability in mid-2025 as its optical unit is positioned to grow steadily this year, representing a strong year-over-year unit increase, while non-optical divisions could improve in the intermediate term.
Overall MXL ranks 6th on our list of the AI stocks that are trending on Wall Street. While we acknowledge the potential of MXL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MXL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
