Monolithic Power (MPWR) AI Stock Analysis

• Market Cap: $42.78B
• Dividend Yield: 0.66%
• Average Volume (3M): 705.98K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 2.16
• 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: 691,778
• 30 Day Avg. Volume: 705,977
• 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: 1.00
• 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: 30.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 17.7
• Revenue Forecast (FY): $2.78B

• Rating: 71 Outperform
• Price Target: $991.00 ▲(10.98% Upside)

Monolithic Power's strong financial performance and promising earnings call insights are offset by bearish technical indicators and valuation concerns. The company's robust growth in automotive and enterprise data markets supports its outlook, but challenges in the AI market and gross margin stability pose risks. Overall, the stock presents a balanced risk-reward profile.

Positive Factors

Revenue Growth

Strong revenue growth reflects effective market strategies and product demand, supporting long-term business expansion and stability.

Market Diversification

Diversified market strategy reduces dependency on single sectors, enhancing resilience against industry-specific downturns.

Balance Sheet Health

Minimal leverage and strong equity position provide financial stability and flexibility for future investments and growth.

Negative Factors

AI Market Challenges

Challenges in AI market engagement could limit growth opportunities in a rapidly expanding sector, impacting future revenue streams.

Gross Margin Stability

Stagnant gross margins may hinder profitability improvements, affecting long-term financial performance and competitive positioning.

Market Visibility Uncertainty

Uncertainty in future demand visibility could impact strategic planning and operational efficiency, posing risks to sustained growth.

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: Neutral
• Last Price: 892.97
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPWR, the sentiment is Neutral. The current price of 892.97 is below the 20-day moving average (MA) of 957.31, below the 50-day MA of 957.52, and above the 200-day MA of 754.95, indicating a neutral trend. The MACD of -29.62 indicates Positive momentum. The RSI at 42.25 is Neutral, neither overbought nor oversold. The STOCH value of 23.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MPWR.

Monolithic Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPWR	71 Outperform	$42.78B	22.80	64.03%	0.66%	30.48%	339.29%
ON	68 Neutral	$19.07B	61.84	3.87%	―	-16.13%	-81.06%
NXPI	63 Neutral	$48.21B	23.53	21.19%	2.20%	-6.81%	-23.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MRVL	59 Neutral	$72.24B	―	-0.75%	0.29%	37.05%	89.40%
STM	57 Neutral	$19.69B	38.82	3.00%	1.57%	-17.33%	-76.71%
MCHP	51 Neutral	$27.70B	―	-2.85%	3.55%	-23.36%	-131.15%

Monolithic Power Corporate Events

Monolithic Power Systems Reports Record Revenue Amid Market Challenges

The latest earnings call from Monolithic Power Systems (MPS) showcased a strong revenue performance and successful market diversification, particularly in the automotive and enterprise data sectors. However, concerns were raised regarding engagement in the AI market, gross margin stability, and limited visibility into future demand, which could impact growth projections.

Monolithic Power Systems Reports Strong Q3 2025 Results

Monolithic Power Systems, Inc. (MPS) is a fabless global company specializing in high-performance, semiconductor-based power electronics solutions, aiming to enhance energy efficiency and reduce material consumption. In its latest earnings report for the third quarter of 2025, MPS announced a revenue of $737.2 million, marking a significant 18.9% increase compared to the same period last year. The company’s GAAP net income rose to $178.3 million, translating to $3.71 per diluted share, a notable improvement from $144.4 million and $2.95 per diluted share in the previous year.

Monolithic Power Declares Q3 Dividend of $1.56

On September 11, 2025, Monolithic Power Systems announced a third quarter dividend of $1.56 per share, payable to stockholders of record as of September 30, 2025, with distribution set for October 15, 2025. This announcement underscores MPS’s commitment to providing consistent returns to its shareholders, reflecting its robust financial health and strategic position in the semiconductor industry.

The most recent analyst rating on (MPWR) stock is a Buy with a $939.00 price target. To see the full list of analyst forecasts on Monolithic Power stock, see the MPWR Stock Forecast page.