Steven Grasso believes MaxLinear, a semiconductor company specializing in high-speed connectivity for data centers, offers rebound potential outweighing the risks. In its latest fiscal year, the company generated about $468 million in revenue, while quarterly sales increased 72% and management forecast fourth-quarter revenue of $240 million to $260 million. Connectivity sales have more than tripled and order visibility reportedly extends into 2028, supported by demand from AI infrastructure. After rising as much as 635%, the stock fell roughly 45% from its peak and traded around $71, compared with an average analyst target of $89 and Morgan Stanley’s high-end target of $125. Grasso nevertheless describes the bet as speculative and notes that a further 30% decline remains possible because of potential data center restrictions and the funding of MaxLinear’s supply commitments.
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