Monolithic Power AI Stock Analysis
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Monolithic Power (MPWR) AI Stock Analysis
Monolithic Power
(NASDAQ:MPWR)
MPWR scores well primarily due to standout financial quality (strong profitability, scaling revenue, robust free cash flow, and minimal balance-sheet leverage) and a highly positive earnings call featuring record revenue, raised enterprise data growth expectations, and continued margin expansion plans. Offsetting factors are weaker technical conditions (price below key moving averages with negative MACD and low RSI) and a rich valuation (P/E 62.13) with only a modest dividend yield (~0.67%).
Monolithic Power Key Performance Indicators (KPIs)
Revenue by GeographyShows where Monolithic Power earns sales across regions (for example, China, North America, Europe), revealing geographic concentration and exposure. Heavy reliance on a single region can increase risk from local demand slowdowns, trade limits, or supply-chain issues, while balanced regional growth points to more stable revenue and broader market opportunity.
Growth is overwhelmingly Asia‑driven—China (then Taiwan and Korea/SEA) has become the dominant revenue engine, with steep acceleration into mid‑2026. Management’s record quarter, enterprise‑data strength and automotive wins explain the surge and justify the >$6B capacity push, but that same concentration raises supply‑chain and geopolitical vulnerability. New DDR5/800V samplings and buybacks support upside, yet execution risk around complex module ramps and geographic diversification remains the main near‑term caveat for investors.
The FlyMonolithic Power (MPWR) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $67.81B
- Dividend Yield
- 0.54%
- Average Volume (3M)
- 825.26K
- Price to Earnings (P/E)
- 76.4
- Beta (1Y)
- 2.07
- Revenue Growth
- 40.49%
- EPS Growth
- -53.68%
- Country
- US
- Employees
- 4,501
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Semiconductors
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 stor...
How the Company Makes Money
MPWR makes money primarily by selling its power management semiconductor products to customers (typically OEMs and electronics manufacturers) through direct sales and through distributors. Revenue is generated on a per-unit basis from shipments of in...
Monolithic Power Earnings Call Summary
The call was strongly positive, supported by record $1.2 billion quarterly revenue, 63% year-over-year growth, a raised enterprise data growth floor, broad-based expansion across communications and automotive, new robotics and high-voltage opportunities, disciplined margin expansion, and substantial capacity plans. The main challenges were near-term notebook weakness, ongoing GaN reliability validation, delayed timing for 800-volt and data-converter revenue, early-stage building automation efforts, and partial absorption of cost increases. Highlights significantly outweighed the lowlights.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
MPS expects to have $8 billion of capacity in place by the second half of 2027 on its way to $10 billion; enterprise data’s floor is now 150% year-over-year, although it is too early to provide a 2027 percentage; the storage and compute segment could be kind of flattish, up a couple of points year-over-year; 800-volt architecture ramps are expected late in '27 with probably more in '28, with revenue probably end of the '27 and 2028; gross margin is expected to remain in the 55% to 60% sweet spot with slow, methodical expansion, including another 10 basis points at the midpoint of the Q4 guide, while operating margin has been growing kind of a point a quarter almost; distribution inventory remains within the normal 5- to 8-week range, and building automation could ultimately represent $50 billion in revenue, but will take some time.
Monolithic Power Financial Statement Overview
Summary
Financial statements indicate a high-quality, scaling business: strong gross margins (~55–58%) with expanding operating profitability (EBIT margin ~31% TTM vs ~22% in 2021), material multi-year revenue growth (~$1.2B in 2021 to ~$3.7B TTM), and an exceptionally conservative balance sheet with negligible-to-zero debt. Key watch items are earnings comparability due to the 2024 net margin outlier (~81% vs ~20–24% otherwise) and some periodic cash conversion/working-capital swings, though free cash flow remains strong (~$607M TTM).
Income Statement
90Very PositiveBalance Sheet
95Very PositiveCash Flow
84Very Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.74B | 2.79B | 2.21B | 1.82B | 1.79B | 1.21B |
| Gross Profit | 2.07B | 1.54B | 1.22B | 1.02B | 1.05B | 685.46M |
| EBITDA | 1.20B | 818.73M | 609.34M | 546.01M | 562.05M | 300.92M |
| Net Income | 891.73M | 615.93M | 1.79B | 427.37M | 437.67M | 242.02M |
Balance Sheet | ||||||
| Total Assets | 4.67B | 4.19B | 3.62B | 2.43B | 2.06B | 1.59B |
| Cash, Cash Equivalents and Short-Term Investments | 1.09B | 1.26B | 862.95M | 1.11B | 737.87M | 725.08M |
| Total Debt | 0 | 24.10M | 15.79M | 5.57M | 1.66M | 0 |
| Total Liabilities | 938.84M | 662.70M | 471.33M | 384.41M | 390.28M | 341.84M |
| Stockholders Equity | 3.73B | 3.53B | 3.15B | 2.05B | 1.67B | 1.24B |
Cash Flow | ||||||
| Free Cash Flow | 607.36M | 666.19M | 642.29M | 580.63M | 187.83M | 224.77M |
| Operating Cash Flow | 872.98M | 838.20M | 788.41M | 638.21M | 246.67M | 320.01M |
| Investing Cash Flow | -596.69M | -157.27M | 223.05M | -178.73M | -12.51M | -378.89M |
| Financing Cash Flow | -804.74M | -285.86M | -872.23M | -183.72M | -128.78M | -90.21M |
Monolithic Power Technical Analysis
Price Trends
Market Momentum
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 1390.54 is above the 20-day moving average (MA) of 1265.60, above the 50-day MA of 1284.35, and above the 200-day MA of 1325.16, indicating a bullish trend. The MACD of 30.59 indicates Negative momentum. The RSI at 56.09 is Neutral, neither overbought nor oversold. The STOCH value of 80.79 is Negative, 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.
Latest Risks Added
3 New RisksMonolithic Power Peers Comparison
Overall Rating
- MPWR78Outperform
TXN68Neutral
ADI67Neutral
MCHP67Neutral
ON60Neutral
POWI58Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| MPWR | 78Outperform | $67.81B | 76.36 | 24.04% | 0.54% | 40.49% | -53.68% |
| TXN | 68Neutral | $277.42B | 39.27 | 40.51% | 1.90% | 20.27% | 40.76% |
| ADI | 67Neutral | $192.84B | 46.98 | 12.26% | 1.08% | 33.65% | 114.59% |
| MCHP | 67Neutral | $33.57B | 46.21 | 12.43% | 2.95% | 33.02% | ― |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| ON | 60Neutral | $27.66B | 40.38 | 9.26% | ― | 2.93% | 126.11% |
| POWI | 58Neutral | $2.47B | 54.58 | 6.57% | 1.94% | 2.33% | 154.91% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| MPWR | Monolithic Power Systems | 1390.54 | 499.51 | 56.06% | |
| ADI | Analog Devices, Inc. | 397.97 | 170.87 | 75.24% | |
| MCHP | Microchip Technology | 61.68 | 11.30 | 22.43% | |
| ON | ON Semiconductor Corporation | 71.06 | 25.04 | 54.41% | |
| POWI | Power Integrations | 44.18 | 12.45 | 39.22% | |
| TXN | Texas Instruments | 303.60 | 151.92 | 100.15% |
Monolithic Power Corporate Events
Monolithic Power Strengthens Financial Leadership With New CFO
PositiveIn the third quarter of 2026, Monolithic Power Systems posted revenue of $1.20 billion, up 22.6% from the prior quarter and 63.1% from a year earlier, with GAAP net income advancing 50.8% year on year to $271.1 million and diluted EPS reaching $5.51....
Monolithic Power Declares Third-Quarter $2.00 Dividend
PositiveOn September 10, 2026, Monolithic Power Systems announced a third-quarter cash dividend of $2.00 per common share, payable to stockholders of record as of the close of business on September 30, 2026. The dividend is scheduled to be distributed on Oct...
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: Nov 06, 2026