Monolithic Power (MPWR) AI Stock Analysis

• Market Cap: $45.58B
• Dividend Yield: 0.62%
• Average Volume (3M): 603.67K
• Price to Earnings (P/E): 24.3
• Beta (1Y): 2.15
• Revenue Growth: 30.48%
• EPS Growth: 339.29%
• Country: US
• Employees: 4,017
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 4.73
• Shares Outstanding: 47,907,000
• 10 Day Avg. Volume: 526,405
• 30 Day Avg. Volume: 603,673
• PEG Ratio: 0.05
• Price to Book (P/B): 9.14
• Price to Sales (P/S): 13.03
• P/FCF Ratio: 44.77
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 16.15
• Enterprise Value/Gross Profit: 29.24
• Enterprise Value/Ebitda: 57.25
• 1Y Price Target: $1,166.64
• Price Target Upside: 27.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 17.7
• Revenue Forecast (FY): $2.78B

• Rating: 76 Outperform
• Price Target: $1,109.00 ▲(21.57% Upside)

Monolithic Power's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's strategic market diversification and robust revenue growth are significant strengths. However, concerns about AI market engagement and gross margin stability, along with moderate valuation metrics, slightly temper the overall score.

Positive Factors

Revenue Growth

The significant year-over-year revenue increase highlights Monolithic Power's strong market position and effective growth strategy, particularly in expanding sectors like automotive and enterprise data.

Market Diversification

Monolithic Power's diversified market strategy, with expansion in automotive and robotics, reduces dependency on any single sector, enhancing long-term stability and growth potential.

Financial Health

The company's minimal leverage and high profitability indicate robust financial health, providing flexibility for future investments and resilience against economic fluctuations.

Negative Factors

AI Market Challenges

Challenges in engaging with the AI market could limit Monolithic Power's growth in this rapidly expanding sector, potentially affecting future revenue streams.

Gross Margin Stability

Stagnant gross margins may hinder profitability improvements, impacting the company's ability to invest in innovation and maintain competitive pricing.

Market Visibility

Uncertainty in market demand visibility could affect strategic planning and operational efficiency, posing risks to revenue and margin forecasts.

Monolithic Power Business Overview & Revenue Model

Company Description

Monolithic Power Systems, Inc. engages in the design, development, marketing, and sale of semiconductor-based power electronics solutions for the computing and storage, automotive, industrial, communications, and consumer markets. The company provides direct current (DC) to DC integrated circuits (ICs) that are used to convert and control voltages of various electronic systems, such as portable electronic devices, wireless LAN access points, computers and notebooks, monitors, infotainment applications, and medical equipment. It also offers lighting control ICs for backlighting that are used in systems, which provide the light source for LCD panels in notebook computers, monitors, car navigation systems, and televisions, as well as for general illumination products. The company sells its products through third-party distributors and value-added resellers, as well as directly to original equipment manufacturers, original design manufacturers, electronic manufacturing service providers, and other end customers in China, Taiwan, Europe, South Korea, Southeast Asia, Japan, the United States, and internationally. Monolithic Power Systems, Inc. was incorporated in 1997 and is headquartered in Kirkland, Washington.

How the Company Makes Money

Monolithic Power generates revenue primarily through the sale of its semiconductor products, which are used in various applications across multiple industries. The company operates on a direct sales model and also collaborates with distributors to reach a broader market. Key revenue streams include the sale of integrated circuits and power modules, with significant contributions from sectors like automotive and industrial automation. Additionally, MPWR benefits from partnerships with major electronics manufacturers, which helps increase its product adoption and market presence. The company's focus on innovation and development of advanced power solutions contributes to its competitive advantage and financial performance.

Monolithic Power Financial Statement Overview

Summary

Monolithic Power demonstrates strong financial health with robust revenue and profit growth, efficient operational management, and a solid capital structure with minimal leverage. The company shows impressive profitability metrics and efficient cash flow generation, supporting its growth trajectory.

Income Statement

Monolithic Power exhibits strong revenue growth with a 6.58% increase in TTM, supported by a solid gross profit margin of 55.31%. The net profit margin is exceptionally high at 73.17%, indicating strong profitability. EBIT and EBITDA margins are also healthy at 26.47% and 27.69% respectively, showcasing efficient operational management.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.0047, indicating minimal leverage and financial risk. Return on equity is impressive at 61.19%, reflecting strong profitability relative to shareholder equity. The equity ratio stands at 85.65%, highlighting a robust capital structure with significant equity financing.

Cash Flow

Operating cash flow to net income ratio is strong at 2.33, suggesting efficient cash generation from operations. Free cash flow growth is positive at 12.46%, and the free cash flow to net income ratio is healthy at 0.79, indicating good cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.66B	2.21B	1.82B	1.79B	1.21B	844.45M
Gross Profit	1.47B	1.22B	1.02B	1.05B	685.46M	465.95M
EBITDA	750.71M	575.79M	521.90M	563.90M	291.12M	185.87M
Net Income	1.90B	1.79B	427.37M	437.67M	242.02M	164.38M
Balance Sheet
Total Assets	4.21B	3.62B	2.43B	2.06B	1.59B	1.21B
Cash, Cash Equivalents and Short-Term Investments	1.27B	862.95M	1.11B	737.87M	725.08M	595.11M
Total Debt	0.00	15.79M	5.57M	1.66M	0.00	3.10M
Total Liabilities	638.45M	471.33M	384.41M	390.28M	341.84M	241.90M
Stockholders Equity	3.57B	3.15B	2.05B	1.67B	1.24B	966.59M
Cash Flow
Free Cash Flow	705.17M	642.29M	580.63M	187.83M	224.77M	212.16M
Operating Cash Flow	900.97M	788.41M	638.21M	246.67M	320.01M	267.80M
Investing Cash Flow	373.46M	223.05M	-178.73M	-12.51M	-378.89M	-39.18M
Financing Cash Flow	-893.94M	-872.23M	-183.72M	-128.78M	-90.21M	-71.56M

Monolithic Power Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 912.25
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPWR, the sentiment is Positive. The current price of 912.25 is below the 20-day moving average (MA) of 931.74, below the 50-day MA of 970.57, and above the 200-day MA of 776.64, indicating a neutral trend. The MACD of 3.10 indicates Negative momentum. The RSI at 50.22 is Neutral, neither overbought nor oversold. The STOCH value of 24.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MPWR.

Monolithic Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPWR	76 Outperform	$45.58B	24.29	64.03%	0.62%	30.48%	339.29%
MRVL	76 Outperform	$71.30B	29.44	18.04%	0.28%	44.95%	―
ON	73 Outperform	$21.95B	69.59	3.87%	―	-16.13%	-81.06%
NXPI	70 Neutral	$57.82B	28.22	21.19%	1.77%	-6.81%	-23.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	57 Neutral	$23.10B	45.60	3.00%	1.28%	-17.33%	-76.71%
MCHP	54 Neutral	$35.62B	-141.70	-2.85%	2.76%	-23.36%	-131.15%

Monolithic Power Corporate Events

Monolithic Power Announces Q4 Dividend for Shareholders

On December 12, 2025, Monolithic Power Systems announced a fourth-quarter cash dividend of $1.56 per share, payable to stockholders of record as of December 31, 2025, with payment scheduled for January 15, 2026. This announcement reflects the company’s ongoing commitment to providing consistent returns to its shareholders, reinforcing its position in the semiconductor power electronics industry.

Monolithic Power Lowers Threshold for Special Meetings

On November 19, 2025, Monolithic Power Systems, Inc. announced the adoption of its Amended and Restated Bylaws, which lower the ownership threshold for stockholders to call a special meeting from 30% to 25%. This decision follows the 2025 annual meeting where a non-binding proposal for a 10% threshold was approved, and feedback from major stockholders supported a higher threshold than 10%. The board’s decision reflects the company’s response to stockholder input and peer company practices.