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Monolithic Power
(NASDAQ:MPWR)
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Rating:71Outperform
Price Target:
$1,451.00
▼(-1.18% Downside)
Action:Upgraded
Date:06/27/26
MPWR scores well on business quality and financial strength (strong margins, very low leverage, solid cash generation) and is supported by a positive earnings-call backdrop (record revenue, improving enterprise-data visibility, and capacity expansion). The score is held back primarily by weak current technicals (below key moving averages with negative MACD and low RSI/Stoch) and a rich valuation (high P/E with only a modest yield).
Positive Factors
High profitability/margins
Sustained mid-50s gross margins and strong operating margins provide durable operating leverage and pricing flexibility across cycles. High margins support reinvestment in R&D and modules, fund dividends/capex, and cushion gross-profit volatility from cyclical end markets, aiding long-term cash generation.
Negative Factors
Moderating revenue growth
Recent slowdown in top-line growth reduces visibility on sustaining historical expansion and increases reliance on new-product ramps and large end-market recoveries. Slower revenue growth compresses the runway for margin leverage and makes execution on capacity and design-win assumptions more critical.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability/margins
Sustained mid-50s gross margins and strong operating margins provide durable operating leverage and pricing flexibility across cycles. High margins support reinvestment in R&D and modules, fund dividends/capex, and cushion gross-profit volatility from cyclical end markets, aiding long-term cash generation.
Read all positive factors
Monolithic Power Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Monolithic Power is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Monolithic Power is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
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The Fly
The FlyMonolithic Power (MPWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$65.43B
Dividend Yield0.62%
Average Volume (3M)779.54K
Price to Earnings (P/E)95.4
Beta (1Y)2.10
Revenue Growth23.90%
EPS Growth-63.09%
CountryUS
Employees4,017
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)13.96
Shares Outstanding49,130,000
10 Day Avg. Volume1,027,263
30 Day Avg. Volume779,544
Financial Highlights & Ratios
PEG Ratio-1.09
Price to Book (P/B)12.33
Price to Sales (P/S)15.60
P/FCF Ratio65.35
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue23.70
Enterprise Value/Gross Profit42.96
Enterprise Value/Ebitda78.30
Forecast
1Y Price Target
$1,800.91Price Target Upside22.65% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)23.98
Revenue Forecast (FY)$3.70B
Monolithic Power Business Overview & Revenue Model
Company Description
Monolithic Power Systems, Inc. specializes in the creation, promotion, and sale of advanced semiconductor components for power management. Their innovative solutions cater to a broad spectrum of industries, including information technology, data s...
How the Company Makes Money
MPWR makes money primarily by selling power management semiconductor products (integrated circuits and modules) to OEMs and contract manufacturers that incorporate them into electronic systems such as vehicles, industrial equipment, servers/data-c...
Monolithic Power Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and demand picture: record revenue, strong sequential and year-over-year growth, notable acceleration in enterprise data and communications, capacity expansion beyond prior targets, and progress on new product sampling and module integration. Offsetting this optimism were margin caution (gross margin at the low end of the target range with possible H2 headwinds), early-stage timing risk for several new initiatives (DDR5/high-voltage/GaN/robotics), cautious outlook for notebook and near-term auto, and some supply-chain and cost pressures. On balance, the strength of revenue growth, backlog/ordering visibility (especially enterprise data and comms), and capacity expansion outweigh the highlighted risks.Positive Updates
Record Quarterly Revenue
Revenue of $804 million in Q1 2026, a record quarterly result — up 7% sequentially (vs Q4 2025) and up 26% year-over-year (vs Q1 2025).
Negative Updates
Gross Margin Pressure and Cautious Outlook
Gross margin has been at ~55.5% (flat for the last four quarters) — at the low end of the company's model (mid-50s to upper-50s). Management signaled potential headwinds in the second half and maintained a cautious margin guidance.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Revenue
Revenue of $804 million in Q1 2026, a record quarterly result — up 7% sequentially (vs Q4 2025) and up 26% year-over-year (vs Q1 2025).
Read all positive updates
Company Guidance
On the call MPS gave concrete near‑term color and quantified longer‑term targets: Q1 revenue was a record $804 million (up 7% sequentially and 26% year‑over‑year), communications revenue jumped 33% sequentially, and management said enterprise data ordering/visibility has strengthened enough to raise the enterprise‑data growth “floor” to roughly 85% year‑over‑year (up from a prior ~50% floor). They confirmed they have passed a $4 billion capacity plan and are now targeting $6 billion of capacity in the near term, reiterated auto should be roughly flat in H1 with a ramp later in the year, said storage (DDR5/HDD/SSD) remains strong while notebook demand is more cautious, noted distribution inventories remain lean, and discussed gross margins — historically ~55.5% for the last four quarters with a mid‑50s to upper‑50s model — expecting an incremental margin improvement in Q2 but remaining cautious about second‑half headwinds; they also highlighted product milestones (sampling DDR5 high‑speed interfaces and new GaN/SiC module work).Monolithic Power Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
95
Very Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.96B | 2.79B | 2.21B | 1.82B | 1.79B | 1.21B |
| Gross Profit | 1.63B | 1.54B | 1.22B | 1.02B | 1.05B | 685.46M |
| EBITDA | 895.14M | 817.24M | 609.34M | 546.01M | 562.05M | 300.92M |
| Net Income | 675.36M | 615.93M | 1.79B | 427.37M | 437.67M | 242.02M |
Balance Sheet | ||||||
| Total Assets | 4.45B | 4.19B | 3.62B | 2.43B | 2.06B | 1.59B |
| Cash, Cash Equivalents and Short-Term Investments | 1.37B | 1.26B | 862.95M | 1.11B | 737.87M | 725.08M |
| Total Debt | 0.00 | 24.10M | 15.79M | 5.57M | 1.66M | 0.00 |
| Total Liabilities | 771.46M | 662.70M | 471.33M | 384.41M | 390.28M | 341.84M |
| Stockholders Equity | 3.68B | 3.53B | 3.15B | 2.05B | 1.67B | 1.24B |
Cash Flow | ||||||
| Free Cash Flow | 627.55M | 666.19M | 642.29M | 580.63M | 187.83M | 224.77M |
| Operating Cash Flow | 832.07M | 838.20M | 788.41M | 638.21M | 246.67M | 320.01M |
| Investing Cash Flow | -112.11M | -157.27M | 223.05M | -178.73M | -12.51M | -378.89M |
| Financing Cash Flow | -305.21M | -285.86M | -872.23M | -183.72M | -128.78M | -90.21M |
Monolithic Power Technical Analysis
Negative
1468.35
Price Trends
1544.87
Negative
1355.14
Negative
1163.19
Positive
Market Momentum
-53.42
Positive
40.69
Neutral
19.94
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPWR, the sentiment is Negative. The current price of 1468.35 is below the 20-day moving average (MA) of 1492.56, below the 50-day MA of 1544.87, and above the 200-day MA of 1163.19, indicating a neutral trend. The MACD of -53.42 indicates Positive momentum. The RSI at 40.69 is Neutral, neither overbought nor oversold. The STOCH value of 19.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $271.70B | 108.41 | 16.84% | 0.28% | 34.07% | ― | |
71 Outperform | $65.43B | 95.40 | 19.05% | 0.62% | 23.90% | -63.09% | |
70 Outperform | $70.48B | 26.59 | 26.14% | 1.79% | 2.37% | 13.28% | |
63 Neutral | $36.83B | 67.11 | 7.45% | ― | -9.04% | -4.21% | |
62 Neutral | $48.08B | 333.92 | 3.05% | 2.79% | 7.08% | ― | |
62 Neutral | $63.36B | 418.09 | 0.86% | 1.28% | 0.79% | -86.68% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
MPWR
Monolithic Power
1,331.73
572.64
75.44%
MRVL
Marvell
272.05
198.00
267.39%
MCHP
Microchip
88.69
17.46
24.52%
NXPI
NXP Semiconductors
279.18
52.07
22.93%
ON
ON Semiconductor
94.63
38.68
69.13%
STM
STMicroelectronics
70.72
39.30
125.10%
Monolithic Power Corporate Events
Executive/Board ChangesDividendsShareholder Meetings
Monolithic Power Declares Second-Quarter Dividend to Shareholders
Positive
Jun 12, 2026
On June 11, 2026, Monolithic Power Systems held its 2026 annual meeting of stockholders, where investors re-elected two Class I directors to new three-year terms, ratified Ernst Young LLP as the company’s independent auditor for the 2026 fi...
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.