We recently published a list of Why These 15 Data Center Stocks Are Plunging In 2025. In this article, we are going to take a look at where MaxLinear Inc (NASDAQ:MXL) stands against other data center stocks that are plunging in 2025.
Data center stocks were flying high at the start of the year, but Wall Street turned sour on them quickly. They were among the biggest losers of the recent selloff. Most of the stocks that fell in the past few weeks weren’t just data center pure plays. Investors invested in pick-and-shovel plays during the rally, and these are mostly the stocks that fell significantly as the pendulum swung the other way.
DeepSeek caused a brief crash in data center stocks. These stocks then recovered early on as hyperscalers doubled down. But after Microsoft canceled two of its data center contracts, the bear market quickly returned to the sector. Recent tariff fears and a negative GDP outlook have also weighed in on this previously-hot sector.
The following data center stocks have plunged the most year-to-date in 2025.
Methodology
For this article, I screened the worst-performing data center stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. 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 373.4% since May 2014, beating its benchmark by 218 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 In Q4 2024: 26
MaxLinear Inc (NASDAQ:MXL) is a company that sells high-performance circuits. Its products are also used in data centers.
The stock is down significantly so far in 2025 as it reported a significant revenue decline in its fiscal year 2024, with revenues dropping 48% year-over-year to $360.5 million from $693.3 million in 2023.
This was attributed to macroeconomic conditions and excess inventory in the market. The company’s Q4 2024 revenue also fell 26% year-over-year.
For Q1 2025, MaxLinear projected revenue between $85-105 million.
MaxLinear reported a Q4 2024 GAAP diluted loss per share of $0.68 and projected negative earnings per share for fiscal year 2025.
The consensus price target of $25.5 implies 101.1% upside.
MXL stock is down 35.89% year-to-date.
Overall, MXL ranks 4th on our list of data center stocks that are plunging in 2025. While we acknowledge the potential of MXL as an investment, our conviction lies in the belief that some 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.
