Could Pegatron’s 5G Win Hint at a Broader Shift in MaxLinear’s (MXL) Wireless Strategy?

• On October 8, 2025, Pegatron 5G announced it has selected MaxLinear's Sierra single-chip Radio SoC for its next generation PR2850 5G Macro Open RAN Radio Unit (O-RU), integrating advanced signal processing capabilities and multi-mode support for 5G, 4G, and NB-IoT networks.
• This client win highlights the increasing adoption of MaxLinear's integrated solutions in the 5G infrastructure market and signals the company's expansion into open, software-programmable radio platforms for major telecom deployments.
• We'll assess how Pegatron's adoption of MaxLinear's Sierra SoC could impact the company's growth outlook in wireless infrastructure and 5G markets.

This technology could replace computers: discover 26 stocks that are working to make quantum computing a reality.

MaxLinear Investment Narrative Recap

To own shares in MaxLinear, you need to believe the company can translate new design wins like Pegatron’s 5G O-RU into sustained growth, while overcoming industry challenges such as intense price pressure and market cyclicality. The Pegatron announcement brings positive visibility to MaxLinear’s expanding presence in 5G infrastructure, yet does not immediately resolve the near-term catalysts or biggest risk, reliance on telecom capex, which remains vulnerable to market swings.

Among recent updates, MaxLinear’s February launch of the Sierra platform set the foundation for later client wins like Pegatron, signaling ongoing momentum in software-programmable Open RAN radio solutions. This development is closely linked to the underlying catalyst of wireless infrastructure recovery and shows progress towards securing multi-year vendor relationships, but it does not shield the company from broader risks like cyclical demand or margin pressure.

In contrast, one risk investors should be aware of is continuing pressure on gross margins as MaxLinear competes with larger and lower-cost manufacturers in key markets like China...

Read the full narrative on MaxLinear (it's free!)

MaxLinear's narrative projects $630.9 million revenue and $89.0 million earnings by 2028. This requires 18.6% yearly revenue growth and a $298.9 million increase in earnings from -$209.9 million.

Uncover how MaxLinear's forecasts yield a $19.85 fair value, a 39% upside to its current price.

Exploring Other Perspectives

Two Simply Wall St Community valuations fall between US$19.85 and US$26.35, reflecting a broad spectrum of investor outlooks. With competition and gross margin pressure remaining in focus after the Pegatron news, you can explore other perspectives on where MaxLinear could go next.

Explore 2 other fair value estimates on MaxLinear - why the stock might be worth as much as 84% more than the current price!

Build Your Own MaxLinear Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your MaxLinear research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free MaxLinear research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate MaxLinear's overall financial health at a glance.

Interested In Other Possibilities?

Early movers are already taking notice. See the stocks they're targeting before they've flown the coop:

• Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 35 best rare earth metal stocks of the very few that mine this essential strategic resource.
• The end of cancer? These 28 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 24 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com