Start here if you're new
what it is
Monolithic Power makes the chips that regulate power inside data centers, cars, industrial gear, and consumer devices.
how it gets paid
Last year Monolithic Power made $2.8B in revenue.
why it's growing
Revenue grew 36.8% last year. Sales rose 19% vs. prior year in the latest quarter.
what just happened
Latest quarter revenue hit $737M and EPS rose to $3.74 as growth stayed strong.
At a glance
A+ balance sheet — rock-solid finances — built to survive anything
70/100 earnings predictability — reasonably predictable
55.6x trailing p/e — you're paying up for this one
0.6% dividend yield — cash in your pocket every quarter
17.5% return on capital — nothing to write home about
xvary composite: 78/100 — average
What they do
Monolithic Power makes the chips that regulate power inside data centers, cars, industrial gear, and consumer devices.
Power management sounds boring. It is not. If your server, car, or factory system needs efficient power conversion, you want chips that waste less energy and less space. MPWR turned that into a 36.0% operating margin and 55.1% gross margin, which is jargon → money left after production costs and operations → proof customers pay up.
How they make money
$2.8B
annual revenue · their business grew +36.8% last year
total revenue
$2.8B
+36.8%
The products that matter
data center power chips
Computing & Storage
$1.4B · 50% of shown revenue
This is the largest disclosed segment at $1.4B. If the AI and enterprise-data thesis is real, this line has to keep doing the heavy lifting.
core growth engine
auto and industrial power
Automotive & Industrial
$840M · 30% of shown revenue
At $840M, this is big enough to matter and diversified enough to smooth some data-center cyclicality. It also shows MPWR is not a one-end-market company.
second pillar
next product wave
Vertical Power & Optical
2026 contribution expected
Management says these products should contribute to 2026 revenue. This page gives you no dollar figure yet, which makes them more thesis support than current results.
watch item
Key numbers
$4.0B
2028 revenue
Your upside case needs revenue to climb from $2.8B to $4.0B, or about 43% growth from here.
55.6x
trailing p/e
That multiple means the stock already prices in years of good news. Great results alone are not enough.
36.0%
operating margin
Operating margin → profit after running the business → so what: MPWR keeps 36 cents from each sales dollar before interest and taxes.
17.5%
return on capital
Return on capital → profit from money put into the business → so what: this is a real quality signal, not just a story stock.
Financial health
A+
strength
- balance sheet grade A+ — near the highest rating possible
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- net profit margin 30.3% — keeps 30 cents of every dollar in revenue
- return on equity 18% — $0.18 profit for every $1 investors have put in
A+ — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in MPWR 3 years ago → it's now worth $26,120.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Latest quarter revenue hit $737M and EPS rose to $3.74 as growth stayed strong.
Sales rose 19% vs. prior year in the latest quarter. Gross margin was 55.1%, which shows the company is scaling without giving up pricing power.
$737M
revenue
$3.74
eps
55.1%
gross margin
the number that mattered
The 55.1% gross margin matters most because it says growth is still profitable growth, not revenue bought at lower prices.
-
monolithic power is on pace for a good 2025.
-
during the september period, sales increased nearly 19% relative to the prior year to $737.2 million.
-
earnings per share also climbed sharply, to $4.73.
-
there were several factors that helped support the solid performance for the period.
-
for one, the sales advance was broad-based, with every operating segment making a contribution.the enterprise data and ai applications segment was particularly noteworthy, due to higher sales of power management solutions for ai-related applications. demand in the storage and computing division was also healthy, thanks to solid sales of both memory and notebook solutions. furthermore, the automotive segment contributed $151.5 million in revenue, a notable increase from the year-ago period, driven by higher sales of applications supporting infotainment and usb connectors. the operating margin also advanced, thanks to the increased top line, as fixed costs were better absorbed. we believe that the story will remain much the same during the december period, resulting in a strong bottom-line increase from a year ago.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
The top threat is AI and enterprise-data growth failing to justify a 55.6x multiple.
med
The AI ramp is already in the stock
Management is targeting 50% enterprise data growth for 2026. When a stock already trades at 55.6x earnings, meeting that goal can look normal and missing it can look expensive.
This is valuation risk first, operating risk second. The multiple leaves little room for a slowdown.
med
Scale disadvantage is real
MPWR has 2.1% market share while Broadcom holds 50%. The moat is engineering efficiency and execution, not market control.
If share gains stall, the bull case loses its cleanest argument.
med
CFO turnover adds avoidable uncertainty
The CFO retired in February 2026 during a period when investors are watching growth, guidance, and capital allocation closely.
A messy handoff would not break the business, but it could raise questions at exactly the wrong time.
Miss the 50% enterprise-data growth target while trading at 55.6x earnings, and the multiple can do more damage than the business does.
source: institutional data · regulatory filings · risk analysis
Pay attention to
growth test
Enterprise data has to back up the 50% target
That is the number the market is effectively underwriting today. If management walks it back, you will feel it in the valuation fast.
next report
Q1 2026 revenue versus the $770M guide
A clean beat would support the idea that Q4 was not a one-off. A miss would make the premium multiple look less patient.
leadership
Permanent CFO appointment
You want a routine succession, not a lingering transition. Governance questions are never helpful when a stock is priced for execution.
ownership trend
Whether institutional buying keeps showing up
Three straight quarters of net buying is supportive. If that reverses while expectations stay high, the stock loses a quiet tailwind.
Analyst rankings
earnings predictability
70 / 100
A 70 / 100 score means results are fairly dependable, but in human-speak, analysts still expect some quarterly swings.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 505 buyers vs. 382 sellers in 3q2025. total institutional holdings: 47.1M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$640
$1629
$984
current price
$1000
target midpoint · +2% from current · 3-5yr high: $1200 (+20% · 6% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive