Monolithic Power Systems is a power chipmaker specializing in voltage regulators... Show more
Monolithic Power Systems (MPWR) trades in a wide 52-week range of $833.18 to $1,714.09, reflecting both the intensity of AI-driven enthusiasm earlier in the year and a subsequent period of profit-taking and re-rating. The stock has consolidated in recent weeks after a September pullback, and its market capitalization sits near $61.6 billion with a trailing price-to-earnings multiple above 70. The company also pays a quarterly dividend of $2.00 per share, equivalent to a modest forward yield below 1%, underscoring that most investors hold the name for growth rather than income.
Monolithic Power Systems designs high-performance power-management integrated circuits and modules that convert, regulate, and deliver electrical power efficiently across computing, data-center, automotive, industrial, communications, and consumer applications. The company operates a fabless model, licensing its proprietary BCD process technology to third-party foundries while focusing its engineering on power density and energy efficiency. Its solutions span power modules, voltage regulators, and increasingly integrated power-delivery systems for AI servers, optical modules, and automotive platforms. This positioning at the power-delivery layer of the AI buildout, combined with a diversified end-market footprint, is why investors closely track MPWR alongside larger semiconductor peers such as NVDA and TXN.
The defining catalyst of the period was the company's second-quarter earnings report, delivered at the end of July 2026. Revenue of $980.6 million rose 48% year over year, driven by a 164% increase in enterprise data revenue to $380.6 million, which now represents roughly 39% of total sales. Adjusted operating margin expanded to 37.5% from 34.8% a year earlier. Management issued third-quarter revenue guidance of $1.14 billion to $1.16 billion, implying approximately 56% year-over-year growth, and raised the 2026 enterprise data growth target to 130% from 85%. The company also announced an additional $500 million share-repurchase authorization, lifting its total authorization to $1 billion.
Beyond earnings, MPWR expanded its manufacturing reach through a long-term 300mm fab agreement with GFS in Singapore, supporting a revenue capacity target well above $6 billion. Automotive momentum continued with more than 1,500 new product introductions year to date. Analyst activity has remained favorable, with several firms reiterating Buy ratings and raising price targets to levels between roughly $1,800 and $2,100.
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Looking ahead, the central question for MPWR is whether AI data-center power demand can sustain its current trajectory. Management's raised enterprise data guidance and expanded capacity targets signal confidence, but investors will watch utilization rates, gross margin, and free-cash-flow generation as new 300mm capacity ramps. The next earnings release, scheduled for late October 2026, will be closely scrutinized against the company's revenue guidance and the 130% enterprise data growth framework. Broader risks include potential slowdowns in hyperscaler spending, valuation sensitivity given an elevated earnings multiple, competitive pressure from larger analog peers, and exposure to any re-rating of high-growth semiconductor names. Consumer and industrial end markets remain softer, and their recovery pace will also influence the company's blended growth.
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The 10-day RSI Oscillator for MPWR moved out of overbought territory on October 07, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 42 instances where the indicator moved out of the overbought zone. In 36 of the 42 cases the stock moved lower in the days that followed. This puts the odds of a move down at 86%.
The Momentum Indicator moved below the 0 level on October 12, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on MPWR as a result. In 76 of 97 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 78%.
The Moving Average Convergence Divergence Histogram (MACD) for MPWR turned negative on October 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In 30 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 65%.
MPWR moved below its 50-day moving average on October 14, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for MPWR crossed bearishly below the 50-day moving average on October 21, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 11 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 79%.
The 50-day moving average for MPWR moved below the 200-day moving average on October 20, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MPWR declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 70%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +8.74% 3-day Advance, the price is estimated to grow further. Considering data from situations where MPWR advanced for three days, in 247 of 326 cases, the price rose further within the following month. The odds of a continued upward trend are 76%.
MPWR may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 222 of 286 cases where MPWR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 78%.
The Tickeron PE Growth Rating for this company is 3 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 33 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron SMR rating for this company is 44 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 57 (best 1 - 100 worst), indicating steady price growth. MPWR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 86 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: MPWR's P/B Ratio (16.190) is slightly higher than the industry average of (6.538). P/E Ratio (77.919) is within average values for comparable stocks, (23.955). Projected Growth (PEG Ratio) (1.014) is also within normal values, averaging (3.761). Dividend Yield (0.006) settles around the average of (0.011) among similar stocks. P/S Ratio (17.153) is also within normal values, averaging (45.794).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of proprietary, advanced analog and mixed-signal semiconductors
Industry Semiconductors