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Monolithic Power
(NASDAQ:MPWR)
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Rating:74Outperform
Price Target:
$1,507.00
▲(12.98% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by strong financial quality (high margins, strong cash generation, and a near debt-free balance sheet) and a very positive earnings call with record growth and strong enterprise-data visibility. These strengths are tempered by weak-to-neutral technical momentum (below key intermediate moving averages with negative MACD) and a rich valuation (high P/E with a modest dividend yield).
Positive Factors
High profitability
Sustained, high margins (gross ~55%, operating ~30%, net ~24% TTM) reflect durable product pricing, high-value analog/mixed-signal IP and operating leverage. These margin levels support reinvestment, returns and resilience across semiconductor cycles as product mix and integration benefit long-term profitability.
Negative Factors
Capacity ramp execution risk
Building the front-end/back-end ecosystem for >$6B capacity entails multi-site qualification, module assembly complexity and supply-chain coordination. Execution delays or qualification failures could defer revenue, compress near-term margins and raise costs, making capacity builds a material operational risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability
Sustained, high margins (gross ~55%, operating ~30%, net ~24% TTM) reflect durable product pricing, high-value analog/mixed-signal IP and operating leverage. These margin levels support reinvestment, returns and resilience across semiconductor cycles as product mix and integration benefit long-term profitability.
Read all positive factors
Monolithic Power Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows 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.
Shows 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.
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The FlyMonolithic Power (MPWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$70.06B
Dividend Yield0.5%
Average Volume (3M)1.03M
Price to Earnings (P/E)87.0
Beta (1Y)2.09
Revenue Growth28.67%
EPS Growth-57.45%
CountryUS
Employees4,501
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)16.40
Shares Outstanding49,130,000
10 Day Avg. Volume824,283
30 Day Avg. Volume1,030,491
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$1,837.11Price Target Upside37.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)24.34
Revenue Forecast (FY)$3.74B
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:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call was predominantly positive: management reported a record quarter with strong sequential and year-over-year revenue growth (notably a 45% sequential surge in enterprise data), broad-based demand across end markets, substantial capacity expansion plans beyond $6B, multiple product samplings and wins (DDR5, 800V, 48V modules, 1,500+ automotive sockets), and an additional $500M share repurchase authorization. Lowlights were mostly cautionary and execution/timing-related — consumer and some storage/notebook segments are soft, certain strategic programs remain early with uncertain near-term revenue, and capacity ramping/back-end module assembly present operational complexity. Given the magnitude and immediacy of the reported revenue growth and strategic traction versus the more moderate/expected risks and early-stage initiatives, the positive items outweigh the negative.Positive Updates
Record Quarterly Revenue
GAAP revenue of $981 million in Q2 2026, a record quarter — up 22% sequentially versus Q1 2026 and up 48% year-over-year versus Q2 2025.
Negative Updates
Consumer and Notebook/Storage Caution
Management flagged the consumer end market as lagging and said notebook-related storage & compute remains cautious into the second half, reducing near-term upside from those subsegments.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue
GAAP revenue of $981 million in Q2 2026, a record quarter — up 22% sequentially versus Q1 2026 and up 48% year-over-year versus Q2 2025.
Read all positive updates
Company Guidance
Management reiterated strong near‑term visibility and raised several internal targets: Q2 revenue was a record $981 million (up 22% Q/Q and 48% Y/Y) with enterprise data up 45% sequentially and book‑to‑bill above 1 (more than a quarter of visibility); they raised the enterprise‑data “floor” from 85% to 130% for the year, extended capacity goals to beyond $6.0 billion, and expect automotive to be up in the mid‑teens Y/Y after shipping more than 1,500 new sockets YTD. They also disclosed initial orders/sampling for high‑speed DDR5 controllers and 800‑volt AC‑to‑DC (GaN/SiC) products, said gross‑margin guidance was nudged slightly higher, noted OpEx remains at the low end of their long‑term model (providing operating‑margin leverage as revenue scales), and the Board authorized an additional $500 million in repurchases, taking the total buyback authorization to $1.0 billion.Monolithic Power Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
95
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.27B | 2.79B | 2.21B | 1.82B | 1.79B | 1.21B |
| Gross Profit | 1.81B | 1.54B | 1.22B | 1.02B | 1.05B | 685.46M |
| EBITDA | 1.01B | 817.24M | 609.34M | 546.01M | 562.05M | 300.92M |
| Net Income | 798.93M | 615.93M | 1.79B | 427.37M | 437.67M | 242.02M |
Balance Sheet | ||||||
| Total Assets | 4.69B | 4.19B | 3.62B | 2.43B | 2.06B | 1.59B |
| Cash, Cash Equivalents and Short-Term Investments | 1.41B | 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 | 790.78M | 662.70M | 471.33M | 384.41M | 390.28M | 341.84M |
| Stockholders Equity | 3.90B | 3.53B | 3.15B | 2.05B | 1.67B | 1.24B |
Cash Flow | ||||||
| Free Cash Flow | 764.94M | 666.19M | 642.29M | 580.63M | 187.83M | 224.77M |
| Operating Cash Flow | 1.07B | 838.20M | 788.41M | 638.21M | 246.67M | 320.01M |
| Investing Cash Flow | -493.17M | -157.27M | 223.05M | -178.73M | -12.51M | -378.89M |
| Financing Cash Flow | -404.41M | -285.86M | -872.23M | -183.72M | -128.78M | -90.21M |
Monolithic Power Technical Analysis
Neutral
1333.81
Price Trends
1431.05
Negative
1402.35
Negative
1212.79
Positive
Market Momentum
-18.31
Negative
48.61
Neutral
30.96
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 1333.81 is below the 20-day moving average (MA) of 1342.17, below the 50-day MA of 1431.05, and above the 200-day MA of 1212.79, indicating a neutral trend. The MACD of -18.31 indicates Negative momentum. The RSI at 48.61 is Neutral, neither overbought nor oversold. The STOCH value of 30.96 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $57.79B | 19.45 | 28.05% | 1.51% | 2.37% | 13.28% | |
74 Outperform | $70.06B | 86.95 | 21.78% | 0.53% | 28.67% | -57.45% | |
68 Neutral | $164.26B | 63.82 | 16.84% | 0.12% | 34.07% | ― | |
67 Neutral | $31.76B | 57.88 | 7.45% | ― | -9.04% | -4.21% | |
62 Neutral | $40.34B | 279.71 | 3.05% | 2.31% | 7.08% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $47.01B | 99.45 | 2.66% | 0.70% | 10.06% | -27.68% |
* Technology Sector Average
MPWR
Monolithic Power
1,359.08
566.69
71.52%
MRVL
Marvell
210.54
134.85
178.17%
MCHP
Microchip
74.36
9.89
15.34%
NXPI
NXP Semiconductors
231.78
29.47
14.56%
ON
ON Semiconductor
78.33
30.74
64.59%
STM
STMicroelectronics
53.28
28.67
116.51%
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.