Monolithic Power Systems, Inc. (MPWR) AI Stock Analysis

Monolithic Power Systems, Inc., headquartered in Kirkland, Washington, designs, develops, markets, and sells semiconductor-based power electronics solutions. Founded in 1997, the company specializes in direct current (DC) to DC integrated circuits that convert and regulate voltages in electronic systems. Its solutions serve computing and storage, automotive technology, industrial machinery, telecommunications, and consumer electronics applications. The product lineup includes DC-DC ICs for portable electronics, computers, and medical equipment, as well as specialized lighting control ICs for LCD backlighting. The company distributes products globally through third-party distributors, value-added resellers, and direct sales channels across China, Taiwan, Europe, South Korea, Southeast Asia, Japan, and the United States.

Between FY2021 and FY2025, annual revenue expanded from $1.21B to $2.79B, reflecting a 5-year revenue CAGR of 27.0%. Revenue grew 48.5% in FY2022, 1.5% in FY2023, 21.2% in FY2024, and 26.4% in FY2025. Gross margin was 56.8% in FY2021 and settled at 55.2% in FY2025, while operating margin shifted from 21.7% in FY2021 to 26.1% in FY2025. Net income reached $615.9M in FY2025 with diluted EPS of $17.77, compared to $1.79B and EPS of $14.13 in FY2024. For the trailing twelve months ended June 30, 2026, revenue stood at $3.27B with EPS of $16.44. In the quarter ended June 30, 2026, quarterly revenue grew 47.6% and quarterly earnings increased 85.8% year-over-year.

As of June 30, 2026, Monolithic Power Systems held $1.41B in cash and short-term investments, total assets of $4.69B, and shareholders' equity of $3.90B. The company reported a current ratio of 4.98. In FY2025, operating cash flow reached $838.2M, supporting free cash flow of $666.2M after capital expenditures of $172.0M. During FY2025, cash deployed toward capital allocation included $284.8M in dividends paid and $7.7M in share buybacks, while the 5-year change in share count was 2.1%.

At a last close of $1210.86, Monolithic Power Systems trades at a trailing P/E of 73.7x and a forward P/E of 38.8x, compared to the median of its Nasdaq-100 Technology peers of 42.1x and 25.1x, respectively. Its price-to-sales of 18.2x and EV-to-EBITDA of 65.2x also sit above peer medians of 11.9x and 30.6x. The company's PEG ratio is 1.04. Over the past year, the stock generated an 18.7% return compared to 16.8% for the S&P 500, while over five years its 161.1% gain surpassed the index return of 83.0%.

Monolithic Power Systems pays a quarterly dividend with a forward annual rate of $8.00 per share, representing a dividend yield of 0.66%. The payout ratio is 37.7%. The company has paid dividends for 13 consecutive years, with an annualized 5-year dividend growth rate of 25.6%. Its last ex-dividend date was September 30, 2026.

Wall Street coverage consists of 13 Strong Buy, 3 Buy, and 1 Hold ratings, with no Sell or Strong Sell recommendations. The mean price target of $1839.80 represents a 51.9% premium to the last close of $1210.86. For the fiscal year ending December 31, 2026, consensus estimates anticipate revenue of $4.16B and EPS of $27.52, representing 54.9% EPS growth. In FY2027, 15 analysts project revenue of $5.31B and EPS of $35.16. Monolithic Power Systems beat EPS estimates in each of the last 4 quarters, with its next earnings release scheduled for October 29, 2026.

This page is an AI-written research summary of Monolithic Power Systems, Inc. (MPWR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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