Monolithic Power Systems, Inc.

What they do

MPS designs power electronics solutions using deep system-level knowledge, semiconductor design expertise and proprietary process, system integration and packaging technologies. The company is fabless, employing over 4,500 people worldwide with locations in Asia, Europe and the U.S., and offers highly integrated, compact and energy-efficient products. Its products serve storage and computing, enterprise data, automotive, communications, consumer and industrial end markets.

Revenue drivers

• Enterprise Data — Cloud and on-premises CPU servers, workstations and AI systems; 38.8% of Q2 2026 revenue at $380.6M, up 164.3% year over year.
• Storage and Computing — Memory, storage solutions, notebooks and graphics cards; 20.4% of Q2 2026 revenue at $199.8M, up 2.3% year over year.
• Automotive — ADAS, infotainment, USB connectors, body electronics, motion control and lighting; 16.0% of Q2 2026 revenue at $157.1M, up 8.2% year over year.
• Communications — Network infrastructure, satellite communications, optical modules and switches; 13.4% of Q2 2026 revenue at $131.5M, up 78.3% year over year.

Recent performance

Q2 2026 revenue was a record $980.6M, up 21.9% sequentially and 47.6% year over year. GAAP gross margin was 55.2%, GAAP operating margin 31.0% and GAAP net income $257.3M, or $5.22 diluted EPS. Non-GAAP net income was $320.1M and non-GAAP diluted EPS $6.50. All end markets grew sequentially, with Enterprise Data up 45% sequentially. These results follow restated 2024 annual and 2025 quarterly financial statements.

Strategy

MPS aims to transform from a chip-only semiconductor supplier to a full service solutions provider. It extended its capacity goal significantly beyond $6B to support future revenue growth. The company is expanding into high-speed DDR5 memory components, High Voltage AC-to-DC products for 800V data center architectures, and automotive sockets, having shipped products for over 1,500 new automotive sockets so far this year. It continues to diversify its global supply chain and invest in new technologies and product families.

Risks

• Material weakness in internal control — A material weakness in accounting for deferred income taxes was identified, and internal control over financial reporting was concluded not effective as of December 31, 2024 and 2025.
• Restatement and related exposure — The 2024 annual and 2025 quarterly financial statements were restated, which may affect investor confidence and lead to increased professional costs, litigation and regulatory inquiries.
• Asia customer and operations concentration — MPS depends on Asian markets for its customer base and has significant operations in Asia, exposing it to political, regulatory, economic, foreign currency and operational risks, including those specific to China.
• Macro, tariff and trade uncertainty — Global economic uncertainties, tariffs, export controls and retaliatory measures could affect the semiconductor industry and MPS's business.

Outlook

Management says its diversified market strategy remains unchanged despite a fluid geopolitical and macroeconomic environment. It expects Enterprise Data strength, new DDR5 memory orders it expects to grow its SAM into next year, and sampling of High Voltage AC-to-DC products for 800V data centers. It also cites expanded capacity beyond a $6B goal to support future revenue growth.