Monolithic Power beats Q4 revenue estimates, raises dividend by 28%

Overview

• Semiconductor solutions provider's Q4 revenue rises 20.8% yr/yr, beating analysts' expectations

• Adjusted operating income for Q4 increases, driven by power management solutions

• Company announced a 28% increase in quarterly dividend

Outlook

• Company forecasts Q1 2026 revenue between $770 mln and $790 mln

• Monolithic Power Systems expects Q1 2026 GAAP gross margin of 54.9% to 55.5%

Result Drivers

• DIVERSIFIED GROWTH - MPS reported over 40% growth in non-Enterprise Data markets, highlighting strength in its diversified business model

• AUTOMOTIVE AND STORAGE GROWTH - Automotive revenue increased by 43.1% and Storage & Computing by 46.0%, driven by higher sales in power solutions

• DATA CENTER EXPANSION - MPS expanded its customer base in Data Center for power solutions across AI, server, memory, optical modules, and switch applications

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for Monolithic Power Systems Inc is $1,250.00, about 10% above its February 4 closing price of $1,136.83

• The stock recently traded at 55 times the next 12-month earnings vs. a P/E of 50 three months ago

Press Release: ID:nGNXbfccMc

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