Monolithic Power Systems ((MPWR)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Monolithic Power Systems (MPS) recently held an earnings call that conveyed a generally positive sentiment, underscored by record revenue achievements and robust growth across various segments. The company celebrated significant advancements in enterprise data and automotive sectors, although it expressed some caution regarding storage and compute due to previous strong quarters and limited visibility into the final quarter of the year. Overall, the sentiment leaned towards optimism with a few areas of cautiousness.
Record Quarterly Revenue
MPS announced a record quarterly revenue of $664.6 million, marking a 4.2% increase from Q1 2025 and a substantial 31.0% rise compared to Q2 2024. This achievement highlights the company’s strong market position and effective growth strategies.
Diversified Revenue Growth
The company reported diversified revenue growth across all end markets. Notably, there were initial shipments of power solutions for new ASIC-based AI products, alongside sustained demand for memory and notebook power solutions. This diversification is a testament to MPS’s strategic adaptability and innovation.
Enterprise Data Segment Growth
Enterprise data is projected to grow between 20% and 30% sequentially in Q3, with expectations for continued sequential growth into Q4. This segment’s performance underscores its critical role in MPS’s overall growth strategy.
Broad-Based Demand
MPS observed strong demand across all end markets, positioning the company well for continued expansion. This broad-based demand reflects the company’s ability to cater to diverse market needs effectively.
Automotive Growth
The automotive sector is anticipated to grow between 40% and 50% for the full year, with new content opportunities expected in Q3 and Q4. This growth is driven by MPS’s strategic partnerships and innovations in automotive technology.
Storage and Compute Caution
Caution was expressed regarding the storage and compute segment in Q3, following very strong performances in Q1 and Q2. Potential cyclical risks were noted, highlighting the need for careful market navigation.
Limited Visibility for Q4
MPS acknowledged limited visibility into Q4, with concerns about atypical ordering patterns and short lead times. This uncertainty necessitates a cautious approach moving forward.
Forward-Looking Guidance
MPS provided guidance for the upcoming quarter, projecting an 8% sequential growth at the midpoint. Enterprise data is expected to grow between 20% and 30% sequentially, with a seasonal uplift in the consumer segment. While most business lines are anticipated to see high single-digit growth, caution remains for storage and compute. Despite these challenges, MPS is confident in its growth trajectory, supported by a diversified market strategy and ongoing innovation. The company aims to transition from a chip-only supplier to a full-service silicon-based solutions provider.
In conclusion, Monolithic Power Systems’ earnings call highlighted a positive outlook, driven by record revenues and strong growth across key segments. While some caution was noted in specific areas, the overall sentiment remains optimistic. The company’s strategic focus on diversification and innovation positions it well for future success.