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AAOI vs. MXL: Which AI Data Center Infrastructure Stock Has an Edge?
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Key Takeaways
Applied Optoelectronics is benefiting from the rising demand for 800G and 1.6T optical transceivers for AI.
AAOI is expanding U.S. manufacturing but faces capacity, supply chain and tariff-related challenges.
MaxLinear raised its 2026 optical data center revenue outlook on stronger hyperscaler demand.
Applied Optoelectronics (AAOI - Free Report) and MaxLinear (MXL - Free Report) are key suppliers to the AI data center infrastructure market. Applied Optoelectronics specializes in high-speed optical transceivers, laser components, and other fiber-optic networking products that enable AI data center connectivity, while MaxLinear develops high-speed connectivity and networking semiconductors, including PAM4 DSPs, transimpedance amplifiers and other interconnect solutions used in AI data center optical and electrical networking.
Applied Optoelectronics or MaxLinear — Which of these AI Data Center Infrastructure stocks has the greater upside potential? Let’s find out.
The Case for AAOI Stock
Applied Optoelectronics is benefiting from robust demand for AI-driven data center infrastructure, which is fueling significant growth and positioning the company for further upside. In the first quarter of 2026, Datacenter revenues reached $81.4 million, more than doubling from the year-ago quarter, as customer engagement strengthened around higher-speed optical products.
This growth is primarily attributed to accelerating customer demand for next-generation data center products, particularly 800G and 1.6 terabit optical transceivers, which are critical components for supporting the bandwidth and speed requirements of AI workloads in hyperscale data centers. In the first quarter alone, AAOI completed its first volume shipment of 800G single-mode transceivers to a major hyperscale customer, with 800G revenues reaching $4.6 million, or 5.6% of total data center revenues.
AAOI’s ability to scale manufacturing capacity rapidly remains a key catalyst. The company has made significant investments in expanding its U.S. manufacturing footprint, especially in Texas. The company recently expanded its Pearland, TX, manufacturing campus, adding nearly 400,000 square feet to boost production of 800G and 1.6T optical transceivers for AI and cloud data centers. The expansion strengthens AOI’s U.S. manufacturing footprint and supports its long-term AI infrastructure growth strategy.
The Case for MXL Stock
MaxLinear is benefiting from strong AI data center infrastructure demand, which has been a major growth driver of the company. In the first quarter of 2026, MXL reported a 43% year-over-year revenue increase, with infrastructure now being its largest revenue category, growing 136% year over year in the first quarter of 2026. This surge is primarily attributed to robust production ramps in optical data center-oriented platforms, as hyperscale customers rapidly scale AI-centric architectures.
A key driver of this momentum is MXL’s Keystone PAM4 DSP optical transceiver platform, which is ramping with multiple major hyperscale customers across the United States and Asia, supporting 400G and 800G deployments. The company has increased its 2026 optical data center revenue expectations to $150 million to $170 million, reflecting higher visibility and strong customer orders. MXL anticipates a step function increase in data center revenues beginning in the second quarter of 2026, with strong upside as run rates expand into 2027.
MXL’s product innovation is also fueling its growth. In May 2026, MaxLinear announced the expansion of its USB UART portfolio with the introduction of the Coronado (MxL81424) and Laguna (MxL81108) families. The expanded portfolio is purpose-built to meet the rapidly scaling control-plane and console-access demands of AI Infrastructure.
Price Performance and Valuation of AAOI and MXL
In the year-to-date period, AAOI shares have gained 212.9%, underperforming MXL shares, which have risen 409.7%. MaxLinear is benefiting from strong demand for AI-driven data center infrastructure, particularly through robust production ramps in optical data center-oriented platforms and expanding adoption of its high-speed connectivity solutions by hyperscale customers.
Despite Applied Optoelectronics expanding its AI portfolio, the company is currently suffering from production capacity constraints and supply chain limitations. Higher capex and tariff uncertainty are likely to affect its flexibility.
AAOI and MXL Stock Performance
Image Source: Zacks Investment Research
Both AAOI and MXL shares are currently overvalued, as suggested by a Value Score of F.
In terms of forward 12-month Price/Sales, AAOI shares are trading at 5.42X, lower than MXL’s 11.04X.
AAOI and MXL Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for AAOI & MXL?
The Zacks Consensus Estimate for AAOI’s 2026 earnings is pegged at 80 cents per share, unchanged over the past 30 days. This indicates a 407.69% increase year over year.
The Zacks Consensus Estimate for MXL’s 2026 earnings is pegged at $1.33 per share, unchanged over the past 30 days. This indicates a 329.03% increase year over year.
AAOI’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing twice, delivering a negative average surprise of 9.58%. MXL’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 11.11%. The average surprise of MaxLinear is higher than that of Applied Optoelectronics.
Conclusion
While both Applied Optoelectronics and MaxLinear are well-positioned to benefit from the AI data center infrastructure market boom, MXL appears to offer greater upside potential thanks to its broader product momentum, sustained hyperscaler adoption, and more consistent earnings performance.
Despite AAOI’s robust and accelerating demand for its next-generation data center products, the company is suffering from intensifying competition from larger rivals, production capacity constraints, supply chain challenges, and tariff-related uncertainties that could hurt the company’s financial performance.
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AAOI vs. MXL: Which AI Data Center Infrastructure Stock Has an Edge?
Key Takeaways
Applied Optoelectronics (AAOI - Free Report) and MaxLinear (MXL - Free Report) are key suppliers to the AI data center infrastructure market. Applied Optoelectronics specializes in high-speed optical transceivers, laser components, and other fiber-optic networking products that enable AI data center connectivity, while MaxLinear develops high-speed connectivity and networking semiconductors, including PAM4 DSPs, transimpedance amplifiers and other interconnect solutions used in AI data center optical and electrical networking.
Applied Optoelectronics or MaxLinear — Which of these AI Data Center Infrastructure stocks has the greater upside potential? Let’s find out.
The Case for AAOI Stock
Applied Optoelectronics is benefiting from robust demand for AI-driven data center infrastructure, which is fueling significant growth and positioning the company for further upside. In the first quarter of 2026, Datacenter revenues reached $81.4 million, more than doubling from the year-ago quarter, as customer engagement strengthened around higher-speed optical products.
This growth is primarily attributed to accelerating customer demand for next-generation data center products, particularly 800G and 1.6 terabit optical transceivers, which are critical components for supporting the bandwidth and speed requirements of AI workloads in hyperscale data centers. In the first quarter alone, AAOI completed its first volume shipment of 800G single-mode transceivers to a major hyperscale customer, with 800G revenues reaching $4.6 million, or 5.6% of total data center revenues.
AAOI’s ability to scale manufacturing capacity rapidly remains a key catalyst. The company has made significant investments in expanding its U.S. manufacturing footprint, especially in Texas. The company recently expanded its Pearland, TX, manufacturing campus, adding nearly 400,000 square feet to boost production of 800G and 1.6T optical transceivers for AI and cloud data centers. The expansion strengthens AOI’s U.S. manufacturing footprint and supports its long-term AI infrastructure growth strategy.
The Case for MXL Stock
MaxLinear is benefiting from strong AI data center infrastructure demand, which has been a major growth driver of the company. In the first quarter of 2026, MXL reported a 43% year-over-year revenue increase, with infrastructure now being its largest revenue category, growing 136% year over year in the first quarter of 2026. This surge is primarily attributed to robust production ramps in optical data center-oriented platforms, as hyperscale customers rapidly scale AI-centric architectures.
A key driver of this momentum is MXL’s Keystone PAM4 DSP optical transceiver platform, which is ramping with multiple major hyperscale customers across the United States and Asia, supporting 400G and 800G deployments. The company has increased its 2026 optical data center revenue expectations to $150 million to $170 million, reflecting higher visibility and strong customer orders. MXL anticipates a step function increase in data center revenues beginning in the second quarter of 2026, with strong upside as run rates expand into 2027.
MXL’s product innovation is also fueling its growth. In May 2026, MaxLinear announced the expansion of its USB UART portfolio with the introduction of the Coronado (MxL81424) and Laguna (MxL81108) families. The expanded portfolio is purpose-built to meet the rapidly scaling control-plane and console-access demands of AI Infrastructure.
Price Performance and Valuation of AAOI and MXL
In the year-to-date period, AAOI shares have gained 212.9%, underperforming MXL shares, which have risen 409.7%. MaxLinear is benefiting from strong demand for AI-driven data center infrastructure, particularly through robust production ramps in optical data center-oriented platforms and expanding adoption of its high-speed connectivity solutions by hyperscale customers.
Despite Applied Optoelectronics expanding its AI portfolio, the company is currently suffering from production capacity constraints and supply chain limitations. Higher capex and tariff uncertainty are likely to affect its flexibility.
AAOI and MXL Stock Performance
Image Source: Zacks Investment Research
Both AAOI and MXL shares are currently overvalued, as suggested by a Value Score of F.
In terms of forward 12-month Price/Sales, AAOI shares are trading at 5.42X, lower than MXL’s 11.04X.
AAOI and MXL Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for AAOI & MXL?
The Zacks Consensus Estimate for AAOI’s 2026 earnings is pegged at 80 cents per share, unchanged over the past 30 days. This indicates a 407.69% increase year over year.
Applied Optoelectronics, Inc. Price and Consensus
Applied Optoelectronics, Inc. price-consensus-chart | Applied Optoelectronics, Inc. Quote
The Zacks Consensus Estimate for MXL’s 2026 earnings is pegged at $1.33 per share, unchanged over the past 30 days. This indicates a 329.03% increase year over year.
MaxLinear, Inc Price and Consensus
MaxLinear, Inc price-consensus-chart | MaxLinear, Inc Quote
AAOI’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing twice, delivering a negative average surprise of 9.58%. MXL’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 11.11%. The average surprise of MaxLinear is higher than that of Applied Optoelectronics.
Conclusion
While both Applied Optoelectronics and MaxLinear are well-positioned to benefit from the AI data center infrastructure market boom, MXL appears to offer greater upside potential thanks to its broader product momentum, sustained hyperscaler adoption, and more consistent earnings performance.
Despite AAOI’s robust and accelerating demand for its next-generation data center products, the company is suffering from intensifying competition from larger rivals, production capacity constraints, supply chain challenges, and tariff-related uncertainties that could hurt the company’s financial performance.
Applied Optoelectronics and MaxLinear currently carry a Zacks Rank #3 (Hold) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.