MPWR Stock Forecast & Price Target

Monolithic Power Systems (MPS) is expected to see significant revenue growth, with projections indicating a 50%+ increase in Enterprise Data revenue for FY26, largely attributed to successful design wins across its client base. In the most recent quarter, MPS reported enterprise data revenue of $75.9 million, marking an 18.9% year-over-year increase, while overall revenue reached $732.52 million, representing a 46% year-over-year growth. The company’s strategy, focused on power management solutions and a fabless manufacturing model, positions it well for continued expansion in high-demand sectors such as computing and automotive.

Monolithic Power Systems reported automotive revenue of $151 million, which was a slight decline of 0.4% quarter-over-quarter and fell short of the projected $155 million, indicating potential concerns in the automotive sector. Additionally, the company experienced a significant decline in its storage and computing revenue, which dropped 13.1% quarter-over-quarter to $162.1 million, also below estimates, raising red flags about demand in critical markets. Furthermore, the flat non-GAAP gross margin of 55.5% and slight revenue declines across key segments suggest that MPS may face challenges ahead, necessitating potential downward revisions of future revenue estimates if new products fail to gain traction.