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Monolithic Power (MPWR)
NASDAQ:MPWR
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Monolithic Power (MPWR) AI Stock Analysis

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MPWR

Monolithic Power

(NASDAQ:MPWR)

Rating:79Outperform
Price Target:
$939.00
▲(12.35% Upside)
Monolithic Power's strong financial performance and positive earnings call sentiment are the primary drivers of its high stock score. The company's robust growth in key segments and strategic focus on innovation support a promising outlook. Technical indicators suggest a stable upward trend, while valuation metrics indicate reasonable pricing. Short-term visibility concerns and caution in certain segments are minor risks.
Positive Factors
Financial Performance
MPS reported a strong beat and raise highlighted by growth across every end market.
Market Position
MPS continues to deliver on its goal of outperforming the broader analog market by >10-15%.
Product Demand
MPS is benefiting from the broad demand for more power resulting from the electrification of everything.
Negative Factors
Market Skepticism
The second half Enterprise Data ramp is likely met with continued skepticism across the investor base.
Tariff Concerns
Potential tariff impacts will remain an overhang for MPS and its peers.

Monolithic Power (MPWR) vs. SPDR S&P 500 ETF (SPY)

Monolithic Power Business Overview & Revenue Model

Company DescriptionMonolithic 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 MoneyMonolithic Power generates revenue primarily through the sale of its semiconductor products, which are designed for high-performance power management and control applications. The company operates on a direct sales model, selling to original equipment manufacturers (OEMs) and distributors, which form a significant portion of its revenue streams. Key revenue sources include the sales of integrated circuits, power modules, and custom solutions tailored to specific client needs. Additionally, MPWR benefits from strategic partnerships and collaborations with various technology companies, enhancing its market reach and product offerings. The growing demand for energy-efficient solutions in sectors like automotive and industrial automation further contributes to MPWR's earnings potential.

Monolithic Power Key Performance Indicators (KPIs)

Any
Any
Revenue by Product
Revenue by Product
Analyzes revenue generated from different products, highlighting which offerings drive sales and indicating areas of innovation or potential market leadership.
Chart InsightsMonolithic Power's DC to DC segment shows a robust recovery, with a significant uptick in 2024, aligning with the company's record revenue growth and strategic focus on innovation. Despite a decline in Lighting Control revenues, the overall outlook remains positive, driven by new product launches in clean energy and automotive sectors. The earnings call underscores a strong diversification strategy, aiming to mitigate risks in volatile segments like enterprise data, ensuring sustained growth momentum into 2025 and beyond.
Data provided by:Main Street Data

Monolithic Power Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with record-breaking revenue and significant growth across multiple segments, especially in enterprise data and automotive. However, there are some concerns regarding the short-term visibility and potential caution in the storage and compute segments.
Q2-2025 Updates
Positive Updates
Record Quarterly Revenue
MPS achieved record quarterly revenue of $664.6 million, which is 4.2% higher than the first quarter of 2025 and 31.0% higher than Q2 2024.
Diversified Revenue Growth
There was diversified revenue growth across all end markets, with initial shipments of power solutions to support new ASIC-based AI products and growth in storage and compute revenue.
Enterprise Data Market Growth
Enterprise data is expected to grow between 20 and 30 percent sequentially in Q3, with anticipated sequential growth in Q4 as well.
Automotive Segment Growth
The automotive segment is expected to see 40% to 50% growth for the full year, driven by new platform ramps.
Negative Updates
Caution in Storage and Compute
There is caution in the storage and compute segments due to coming off two very strong quarters in Q1 and Q2, and historical boom and bust cycles in these markets.
Limited Visibility Beyond Two Quarters
The company has limited visibility beyond two quarters due to short lead times and a dynamic market, which affects the ability to build a significant backlog.
Company Guidance
During the MPS Second Quarter 2025 Earnings Webinar, the company provided guidance for the upcoming September quarter, projecting an 8% sequential revenue growth at the midpoint. Specifically, they anticipate enterprise data to grow by 20-30% sequentially and expect a seasonal uplift in the consumer segment. While most of their business lines are expected to see high single-digit growth, storage and compute are approached with caution due to strong performances in the preceding quarters. Additionally, MPS is navigating a dynamic market environment, with short lead times influencing visibility into Q4, though they expect sequential growth in that quarter as well. The company also highlighted their ongoing transformation into a silicon-based solutions provider and discussed the strategic ramp-up in their ASIC program, which involves multiple customers and design wins.

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. Cash flow generation is strong, supporting its profitability and growth trajectory.
Income Statement
85
Very Positive
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
80
Positive
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
78
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.54B2.21B1.82B1.79B1.21B844.45M
Gross Profit1.41B1.22B1.02B1.05B685.46M465.95M
EBITDA704.91M575.79M521.90M563.90M291.12M185.87M
Net Income1.86B1.79B427.37M437.67M242.02M164.38M
Balance Sheet
Total Assets3.97B3.62B2.43B2.06B1.59B1.21B
Cash, Cash Equivalents and Short-Term Investments1.15B862.95M1.11B737.87M725.08M595.11M
Total Debt15.94M12.97M5.57M1.66M0.003.10M
Total Liabilities570.14M471.33M384.41M390.28M341.84M241.90M
Stockholders Equity3.40B3.15B2.05B1.67B1.24B966.59M
Cash Flow
Free Cash Flow704.30M642.29M580.63M187.83M224.77M212.16M
Operating Cash Flow893.41M788.41M638.21M246.67M320.01M267.80M
Investing Cash Flow219.13M223.05M-178.73M-12.51M-378.89M-39.18M
Financing Cash Flow-883.92M-872.23M-183.72M-128.78M-90.21M-71.56M

Monolithic Power Technical Analysis

Technical Analysis Sentiment
Positive
Last Price835.76
Price Trends
50DMA
770.75
Positive
100DMA
703.13
Positive
200DMA
656.57
Positive
Market Momentum
MACD
24.83
Positive
RSI
55.76
Neutral
STOCH
71.13
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 835.76 is above the 20-day moving average (MA) of 832.59, above the 50-day MA of 770.75, and above the 200-day MA of 656.57, indicating a bullish trend. The MACD of 24.83 indicates Positive momentum. The RSI at 55.76 is Neutral, neither overbought nor oversold. The STOCH value of 71.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MPWR.

Monolithic Power Risk Analysis

Monolithic Power disclosed 36 risk factors in its most recent earnings report. Monolithic Power reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Monolithic Power Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$40.03B21.7666.50%0.67%34.30%352.35%
76
Outperform
$59.21B27.7523.11%1.73%-7.53%-21.88%
69
Neutral
$20.28B46.275.72%-17.93%-75.83%
68
Neutral
$24.36B39.353.72%1.13%-22.97%-78.58%
61
Neutral
$54.20B-0.75%0.38%37.05%89.40%
54
Neutral
$297.71M3.07-5.40%2.71%5.76%-75.96%
53
Neutral
$35.08B84.25-2.24%2.80%-35.70%-113.08%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MPWR
Monolithic Power
835.76
4.01
0.48%
MRVL
Marvell
62.86
-6.93
-9.93%
MCHP
Microchip
65.00
-9.22
-12.42%
NXPI
NXP Semiconductors
234.85
3.04
1.31%
ON
ON Semiconductor
49.59
-21.17
-29.92%
STM
STMicroelectronics
26.99
-2.26
-7.73%

Monolithic Power Corporate Events

Executive/Board ChangesShareholder MeetingsDividends
Monolithic Power Announces Second Quarter Dividend
Neutral
Jun 16, 2025

On June 12, 2025, Monolithic Power Systems held its annual stockholders meeting where several key decisions were made, including the election of three directors, the ratification of Ernst & Young LLP as the independent auditor, and the approval of executive compensation. Additionally, stockholders approved a proposal to amend the company’s Certificate of Incorporation to declassify the Board and granted shareholders the ability to call special meetings. On June 13, 2025, MPS announced a second quarter dividend of $1.56 per share, payable on July 15, 2025, to stockholders of record as of June 30, 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 22, 2025