Monolithic Power Systems, Inc. (MPWR), headquartered in Kirkland, Washington, designs, develops, markets, and sells semiconductor-based power electronics solutions for the storage and computing, automotive, enterprise data, consumer, communications, and industrial markets. With a market cap of $62.5 billion, the company offers power management IC, isolated gate drivers, power modules, battery and chargers, load switches, inductors, analog input devices, sensors, motor drivers and controllers, and electronic components. The analog and mixed-signal chipmaker is expected to announce its fiscal second-quarter earnings for 2026 in the near term.
Ahead of the event, analysts expect MPWR to report a profit of $4.83 per share on a diluted basis, up 63.7% from $2.95 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect MPWR to report EPS of $20.13, up 57.4% from $12.79 in fiscal 2025. Its EPS is expected to rise 23.5% year over year to $24.85 in fiscal 2027.
MPWR stock has outperformed the S&P 500 Index’s ($SPX) 20.2% gains over the past 52 weeks, with shares up 72.8% during this period. Similarly, it outperformed the State Street Technology Select Sector SPDR ETF’s (XLK) 41.6% gains over the same time frame.
MPWR beat on AI and data center strength. Enterprise data and communications led growth, as optical module/switch demand rose 33% sequentially while server/AI orders continued to ramp. Due to that, management raised enterprise data growth guidance to 85% year over year and increased manufacturing capacity to $6 billion. In addition, new product ramps in DDR5, robotics, and auto provide further upside. That said, near-term caution remains around notebooks and inventory, though the company is still well positioned to capture AI infrastructure demand.
Analysts’ consensus opinion on MPWR stock is bullish, with a “Strong Buy” rating overall. Out of 15 analysts covering the stock, 12 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and one gives a “Hold.” MPWR’s average analyst price target is $1,812.15, indicating a notable potential upside of 37.8% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
