Monolithic Power Systems, Inc. — Cyborg Score 8/10

Strong
Semiconductor - Power Management & Analog ICs

Strategic Profile

The company generated $3 billion in LTM revenue, reflecting sustained demand from AI data infrastructure and high-performance computing applications. The company's book-to-bill ratio is well above one, with backlog extending into Q2 and Q3 2026, providing strong demand and increased visibility for the first half of 2026.

Cyborg Score Rationale

MPWR posted quarterly revenue of $751.2 million, up 20.8% year-on-year, with adjusted earnings per share of $4.79 beating expectations. Management signaled book-to-bill >1 with backlog into Q3 2026 and highlighted strengthening data-center demand, supporting multi-quarter growth expectations. However, the company trades near 43x earnings, creating execution versus valuation tension.

Top Insights

  • In early February 2026, the company issued first-quarter 2026 revenue guidance of $770.0 million to $790.0 million and announced a quarterly dividend increase from $1.56 to $2.00 per share
  • Management forecasts a 30% to 40% increase in enterprise data revenue for 2026
  • In December 2025, MPWR was added to the NASDAQ 100
  • Quarterly revenue rose 19% year over year, supported by higher AI power content and steady industrial and communications demand

Named Competitors

  • Analog Devices — Integrated circuits and mixed-signal semiconductors
  • Texas Instruments — Analog and embedded processing semiconductors
  • NXP Semiconductors — Mixed-signal and automotive semiconductors
  • Silicon Laboratories — Analog and mixed-signal ICs

Recent Developments

  • (Feb 2026) Record Q4 2025 revenue of $751.2M (+20.8% YoY) and raised Q1 2026 guidance to $770-$790M
  • (Feb 2026) Increased quarterly dividend from $1.56 to $2.00 per share, signaling confidence in cash flow
  • (Feb 2026) CFO Bernie Blegen retiring after 10 years; Rob Dean becomes interim CFO
  • (Dec 2025) Added to NASDAQ 100 index

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