MaxLinear unveils 1.6T PAM4 DSP for AI/ML applications

CARLSBAD, Calif. - MaxLinear, Inc. (NASDAQ: MXL), a semiconductor company currently trading near its 52-week low of $10.86, has announced the sampling and commercial availability of its new 1.6T PAM4 SERDES and DSP technology, named Rushmore. The product, designed using Samsung’s CMOS technology, aims to enhance performance and power efficiency for networking within the AI/ML space. According to InvestingPro data, the company maintains a solid gross profit margin of 54%.

Rushmore is the result of MaxLinear’s continued innovation in DSP technology, extending from 100G to 800G devices. Despite recent market challenges that led to a 48% year-over-year revenue decline to $360.53M, the company promises that Rushmore brings improved power efficiency and functionality to meet the demands of 1.6TB high-speed optical connectivity solutions.

The technology is set to be demonstrated at the Optical Fiber Communication (OFC) conference in San Francisco, starting April 1, 2025. MaxLinear’s CEO Kishore Seendripu highlighted Rushmore’s low power consumption and advanced features that support the deployment and link health monitoring of next-generation 1.6T interconnects.

Rushmore’s key features include high-speed capabilities of up to 200G per lane, compatibility with Ethernet and InfiniBand protocols, a low-latency architecture suitable for AI/ML clusters, and advanced diagnostics for comprehensive link health monitoring.

The introduction of Rushmore comes at a time when the market is facing supply constraints and delays. MaxLinear’s collaboration with OpenLight and Nokia aims to address the growing need for energy-efficient photonic interconnects in the face of accelerating network demands.

MaxLinear will showcase Rushmore’s performance across multiple applications at OFC 2025, as well as at partner booths including Infinera, now part of Nokia, and OpenLight Photonics.

The announcement is based on a press release statement by MaxLinear, Inc. and reflects the company’s efforts to advance networking technology in the AI/ML industry. InvestingPro analysis suggests the stock is currently undervalued, with six analysts recently revising their earnings estimates upward for the upcoming period. For deeper insights into MaxLinear’s financial health and growth prospects, including more than 10 additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, MaxLinear Inc. reported its fourth-quarter 2024 earnings, showing a revenue increase to $92.2 million, which exceeded analysts’ expectations. The company posted an earnings per share (EPS) of -$0.09, surpassing the forecasted -$0.13. Despite the positive earnings report, Moody’s Ratings downgraded MaxLinear’s corporate family rating to B3 from B1, citing disappointing financial performance and expectations of continued weak EBITDA margins. The downgrade also affected MaxLinear’s senior secured first lien credit facilities.

Additionally, MaxLinear is involved in an ongoing arbitration with Silicon Motion Technology Corp. concerning a terminated acquisition agreement, with potential financial implications depending on the outcome. On the product front, MaxLinear’s technology is featured in Morelink Technology Corporation’s new 5G Repeater platform, which highlights the MxL1600 RF transceivers, offering improved energy efficiency and performance.

Furthermore, MaxLinear’s infrastructure and broadband segments have been key drivers of growth, with the company continuing to invest in strategic areas. The company maintains a large cash balance, approximately $120 million, which supports its liquidity despite potential arbitration-related financial pressures. Looking forward, MaxLinear has provided revenue guidance for Q1 2025, estimating between $85 million and $105 million, with expectations of continued growth in its key segments.

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