The article recommends Sandisk and MaxLinear as top semiconductor stocks to hold through 2032. Sandisk, a NAND flash memory chipmaker, has shown exceptional growth with 372% year-over-year revenue increase and is predicted to potentially reach a $1 trillion valuation. MaxLinear, which develops microchips for optical fiber infrastructure in data centers, has grown 500% this year and shows accelerating sequential growth rates similar to other top performers.

The article argues that SpaceX's $2 trillion valuation is too high relative to its revenue, even accounting for projected $100 billion annual recurring revenue by 2026, resulting in a price-to-sales ratio above 20. Instead, the author recommends three better-valued growth stocks: SanDisk (strong NAND memory demand from AI), MaxLinear (optical data center products), and nVent (liquid cooling solutions for data centers).

MaxLinear stock surged 50.7% in September 2026, driven by accelerating demand for optical networking chips used in AI data centers, positive analyst reports, and a rebound from summer lows. The company raised its optical data center revenue outlook to $220 million and holds only 7% market share with plans to triple it. However, the stock trades at a lofty 39x forward earnings with high volatility, presenting both opportunity and risk.

MaxLinear (MXL) and Vicor (VICR) both benefit from AI infrastructure spending but address different data center bottlenecks. MaxLinear focuses on connectivity through optical and electrical interconnects with already meaningful AI revenues and multiple product ramps planned through 2027-2028. Vicor targets power delivery for AI processors with a stronger balance sheet but earlier-stage technology development. Analysis concludes MXL has the near-term edge despite higher valuation and customer concentration risks.

NXP Semiconductors reported better-than-expected Q2 2026 results with non-GAAP earnings of $3.61 per share (up 32.7% YoY) and revenues of $3.50 billion (up 19.5% YoY). The company showed broad-based growth across automotive, industrial, and data center segments, with AI becoming an increasingly important growth driver. Despite strong earnings, shares have underperformed the S&P 500 by 7.4% over the past month. NXP has a Zacks Rank #3 (Hold) with upward estimate revisions.

Small-cap stocks have significantly outperformed large-cap indices in 2026, with the Russell 2000 up 35% over the past 12 months. The surge is driven by a rotation from overvalued large-caps, AI supply chain expansion, and strong earnings growth expectations of 38-48% for small caps. While concerns exist around potential rate hikes and inherent volatility, small-cap ETFs are recommended as the best way to access this growth.

MaxLinear has nearly quadrupled year-to-date as investors recognize its role in AI infrastructure. The semiconductor chip designer reported 43% YoY revenue growth in Q1 2026, with its infrastructure segment surging 136% YoY. The company projects 52% YoY growth for Q2, positioning it to exceed its 2x semiconductor industry growth target. With a sub-$10B market cap and strong guidance from continued tech giant AI spending, analysts suggest potential for 10x growth.

Several Russell 2000 small-cap stocks have surged 400%+ in 2026, driven by AI infrastructure demand. Companies like Applied Optoelectronics, Aehr Test Systems, and MaxLinear—which supply optical networking, semiconductor testing, and connectivity products—have outperformed mega-cap tech stocks. Small-cap growth ETFs including VTWG, IWO, and ISMD provided early exposure to these winners before they became mainstream AI investment stories.

While Micron and Dell have surged 260% in 2026 driven by AI server demand, five Russell 2000 small-cap stocks have each rallied over 400%. Four are AI supply chain plays (optical components, semiconductor testing, networking chips), while one is an unrelated healthcare company. Applied Optoelectronics leads at +473%, followed by Rackspace at +461%, Aehr Test Systems at +436%, agilon health at +404%, and MaxLinear at +398%.

MaxLinear reported Q1 earnings of $0.22 per share, beating the Street estimate of $0.18, with revenue of $137.19 million exceeding the $135 million consensus. The company's infrastructure segment grew over 130% year-over-year, driven by strong optical data center connectivity products for hyperscale AI customers. MaxLinear stock surged 27% in after-hours trading. The company provided Q2 guidance of $160-170 million in revenue, significantly ahead of analyst expectations of $137.45 million.

Weybosset Research & Management LLC fully exited its position in MaxLinear on January 6, 2026, selling all 205,893 shares worth approximately $3.31 million. The exit reflects MaxLinear's poor performance, with stock down 42% from early 2023 and revenue declining 62% over three years, while the company has shifted from $101 million in net income in 2022 to a $180 million net loss.

MaxLinear, Inc. (MXL) reported a 50% year-over-year decline in net revenue for Q2 2024, leading to a 26% drop in its stock price. The company attributed the decline to excess customer inventory and weakened demand. A securities fraud investigation has been launched, and investors who lost money are encouraged to contact the law firm Bleichmar Fonti & Auld LLP.