Based in West Palm Beach, Florida, Monolithic Power Systems, Inc. (MPWR) is a fabless semiconductor company developing power management solutions for advanced electronics. With a market cap of roughly $64.7 billion, its products include DC-DC and AC-DC converters, power management ICs, MOSFET drivers, current limit switches, and lighting controls.
The company’s specialized power-management chips are designed to reduce total energy consumption across servers, artificial intelligence (AI) systems, storage, networking, appliances, and automotive technologies.
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That focus has translated into share-price performance. MPWR stock gained 52.3% over the last 52 weeks, outperforming the S&P 500 Index ($SPX), which gained 18.3% during the same stretch.
Even in 2026, the stock has continued to outshine the index, rising 41.8% year-to-date (YTD) while the broader index gained 11.8%. It has also outpaced its sector by far, as the State Street Technology Select Sector SPDR ETF (XLK) gained 37.2% over the last 52 weeks and 25.1% YTD in 2026.
www.barchart.com Higher sales of power-management solutions for AI and servers have powered the stock’s rally, with demand gathering pace across data centers. As hyperscalers race to build next-generation compute infrastructure, Monolithic Power’s chips are becoming important for delivering the efficient, reliable power that these demanding systems require at scale.
The trend was clear in Monolithic Power’s Q2 FY2026 report, released on Thursday, July 30. Enterprise Data revenue surged 164.3% year over year (YOY) to $380.6 million, accounting for nearly 38.8% of total sales.
Moreover, Monolithic Power has since raised its 2026 Enterprise Data growth floor to 130% from 85%, following a sharp acceleration in AI and server demand. Outside Enterprise Data, Communications revenue climbed 78.3% YOY, driven by optical modules and switch-power solutions, adding another source of momentum.
For FY2026 ending in December, analysts expect diluted EPS of $23.35, representing an 82.6% YOY increase. The company has also beaten analyst EPS estimates in three of the last four quarters, which is an encouraging statistic.
Wall Street currently gives the stock an overall “Strong Buy” rating. Among 14 analysts covering the name, 11 have assigned “Strong Buy,” two recommend “Moderate Buy,” and one suggests “Hold.”
www.barchart.com Notably, the bullish view has barely changed from three months ago, when 12 analysts also rated the stock a “Strong Buy.” The consistency suggests that analysts see durable fundamentals further supporting Monolithic Power’s growth trajectory.
Analysts have even raised their price targets, pointing to MPWR’s distinctive positioning in the market. On Friday, July 31, Truist Financial analyst William Stein reiterated a “Buy” rating and lifted his price target to $1,889 from $1,805, following Monolithic Power’s solid Q2 results and demand outlook.
Needham analyst Quinn Bolton also reiterated a “Buy” rating on Monolithic Power on July 31, raising his price target to $2,000 from $1,750. Such upgrades reinforce MPWR’s bullish case.
Against that backdrop, the average price target of $1,830.83 indicates potential upside of 42.5%. Meanwhile, the Street-High target of $2,100 suggests a gain of 63.4% from current levels.
On the date of publication, Aanchal Sugandh 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.
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