Monolithic Power Systems forecasts first-quarter revenue above estimates on AI-powered demand

Feb 5 (Reuters) - Monolithic Power Systems MPWR.O forecast first-quarter revenue above estimates on Thursday, betting on strong demand for its power control products and semiconductors as the artificial intelligence boom drives data center expansion.

The growing adoption of generative AI has helped drive demand for the hardware required to help run advanced data centers, helping providers such as Monolithic, which counts AI chip heavyweight Nvidia NVDA.O among its customers.

The company expects sales between $770 million and $790 million for the first quarter, compared with the analysts' average estimate of $732 million, according to data compiled by LSEG.

"Trends toward EVs, data center power, industrial power, and renewable energy should all create more demand for MPS' technology," Morningstar analysts said in a note last month, adding that they expect the company to gain more share in the power chips market.

Monolithic CFO Bernie Blegen will also step down from his position, the company said on Thursday. The company's Corporate Controller Rob Dean will serve as interim CFO.

Revenue for the fourth quarter stood at $751.2 million, compared with the consensus estimate of $739.9 million.

The company's adjusted net income for the fourth quarter came in at $235.3 million, beating estimates of a profit of $229.8 million.