Monolithic Power Systems (MPWR)
NASDAQ:MPWR
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Monolithic Power
(NASDAQ:MPWR)
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Rating:81Outperform
Price Target:
$1,849.00
▲(25.92% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong financial quality (high margins, strong cash generation, and near-zero leverage) and supportive technical uptrend. This is partially tempered by expensive valuation (high P/E and low yield) and earnings-call risks centered on margin headwinds and timing uncertainty for newer product initiatives.
Positive Factors
High Profitability
Sustained mid-50s gross margins and high operating profitability reflect differentiated analog IP and pricing power across industrial, data-center and comms end markets. High structural margins support durable cash generation, reinvestment in R&D, and the ability to fund module integration strategies.
Negative Factors
Slowing Revenue Growth & One-offs
Top-line growth has moderated from prior compounding rates and an anomalous 2024 margin spike reduces earnings consistency. Slower organic growth and one-off profit noise make long-term revenue trajectory and recurring margin baselines harder to model and may compress investor visibility.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained mid-50s gross margins and high operating profitability reflect differentiated analog IP and pricing power across industrial, data-center and comms end markets. High structural margins support durable cash generation, reinvestment in R&D, and the ability to fund module integration strategies.
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.
Data provided by:
The Fly
The FlyMonolithic Power (MPWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$76.15B
Dividend Yield0.62%
Average Volume (3M)618.41K
Price to Earnings (P/E)69.5
Beta (1Y)2.06
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. Volume628,399
30 Day Avg. Volume618,408
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 Cap0.94
Enterprise Value/Revenue24.33
Enterprise Value/Gross Profit44.10
Enterprise Value/Ebitda83.50
Forecast
1Y Price Target
$1,754.55Price Target Upside19.49% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)23.81
Revenue Forecast (FY)$3.67B
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 prov...
How the Company Makes Money
MPWR makes money by selling its semiconductor products—primarily power management integrated circuits and power modules—into original equipment manufacturers (OEMs) and electronics manufacturers whose end products require efficient power conversio...
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 | 861.78M | 817.24M | 575.79M | 521.90M | 563.90M | 291.12M |
| 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
Neutral
1468.35
Price Trends
1336.58
Positive
1208.00
Positive
1060.96
Positive
Market Momentum
60.93
Positive
48.26
Neutral
25.55
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 1468.35 is below the 20-day moving average (MA) of 1582.12, above the 50-day MA of 1336.58, and above the 200-day MA of 1060.96, indicating a neutral trend. The MACD of 60.93 indicates Positive momentum. The RSI at 48.26 is Neutral, neither overbought nor oversold. The STOCH value of 25.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $76.15B | 69.45 | 19.05% | 0.62% | 23.90% | -63.09% | |
77 Outperform | $73.60B | 10.55 | 26.14% | 1.79% | 2.37% | 13.28% | |
75 Outperform | $154.88B | 42.24 | 19.38% | 0.28% | 42.09% | ― | |
72 Outperform | $44.33B | -183.45 | 7.45% | ― | -9.04% | -4.21% | |
65 Neutral | $54.92B | 215.94 | 0.86% | 1.28% | 0.79% | -86.68% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $50.79B | 173.03 | 3.05% | 2.79% | 7.08% | ― |
* Technology Sector Average
MPWR
Monolithic Power
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STM
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138.16%
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.