Monolithic Power Systems Inc

Monolithic Power Systems designs chips that manage electrical power inside electronic equipment. They convert and regulate voltages so processors, memory and other parts get the power they need. The chips go into products ranging from AI servers and graphics cards to car driver-assistance systems and home appliances. The company is fabless: it designs its chips but buys the silicon wafers from outside suppliers. Its main product families include DC-to-DC and AC-to-DC power converters and power management chips. The company says its chips fit more functions into smaller, more energy-efficient packages than many rivals. Its products typically stay in production for more than 10 years.

Revenue reached $2.79 billion in fiscal 2025, up 26.4%. Gross margin, the share of sales left after production costs, was 55.2%. Storage and computing was the largest end market at 26.3% of revenue. Next came enterprise data (servers, workstations and AI systems) at 25.2%, automotive at 21.2%, communications at 11.1%, consumer at 9.1% and industrial at 7.1%.

The company's applications engineers work with customers' engineers to get its chips designed into new products. Most sales then go through third-party distributors and resellers. Three distributors accounted for 26%, 18% and 10% of fiscal 2025 revenue. Customers in Asia produced 92% of revenue, led by China at 55.3%, Taiwan at 19.7% and South Korea at 9.1%. The United States was 3.5%.

• In Q2 FY2026 (ended Jun 30, 2026), revenue was $980.6M, up 47.6% from a year earlier, and net income was $257.3M (+90.6%).
• For fiscal 2025, revenue was $2.79B (+26.4% year over year; +27.0% a year from FY2020 to FY2025) with a 22.3% net margin.

• Over FY2021–FY2025: $646.5M in buybacks and $958.6M in dividends.
• Regular dividend per share increased 8 years in a row.
• Regular dividends per share grew +25.6% a year over 5 years (FY2020–FY2025).
• Dividends took 45.8% of earnings and 42.8% of free cash flow in the latest fiscal year.
• Shares outstanding changed +7.0% from Aug 2, 2021 to Jul 29, 2026.

Rank among 1514 US companies

Market value at each year end

Monolithic Power Systems’s market value went from $3.33B at the end of 2016 to $61.13B on Nov 2, 2026, about 18.3 times as much; since the end of 2025 it is up 41%.

Form 4 filings from 2025-10-30 to 2026-10-30 (25 read): 0 open-market purchases and 73 sales ($229.4M), 37 of them under pre-arranged 10b5-1 trading plans.

Large shareholders (13G filings)

ETFs with the most weight in MPWR

1. Heavy dependence on China and Asia. Customers in Asia produced 92% of fiscal 2025 revenue, and China alone produced 55.3%. Political tension, Chinese government rules, a weaker Chinese economy or conflict involving Taiwan could hurt sales.
2. U.S.–China trade limits and tariffs. Export controls, tariffs or other trade restrictions could limit sales or raise costs. The company also runs manufacturing and testing facilities in China, which could face delays or higher costs.
3. Three distributors drive over half of sales. Three distributors accounted for 26%, 18% and 10% of fiscal 2025 revenue. Losing one could cause a sharp drop in sales. So could a distributor cutting orders to reduce its own stock of chips.
4. Restated financials and a control weakness. The company found a material weakness (a serious gap in its financial-reporting checks) and restated earlier results, disclosed February 27, 2026. Further problems could hurt investor trust and the share price.
5. Relies on outside factories for wafers. As a fabless company, it buys wafers and other key parts from third parties. Capacity shortages, supplier price increases or costlier gold, copper and silicon could limit shipments or squeeze profit margins.
6. Boom-and-bust chip cycles and inventory. Chip demand rises and falls sharply. With supply lead times of 16 to 26 weeks, the company builds inventory based on forecasts. If orders fall short, it may need discounts or write-downs.

• Oct 29, 2026 Quarterly results released; Executive or board change
• Sep 10, 2026 Other company announcement
• Jul 30, 2026 Quarterly results released
• Jun 12, 2026 Shareholder vote results; Other company announcement
• Apr 30, 2026 Quarterly results released
• Feb 27, 2026 Earlier financial statements no longer reliable
• Feb 5, 2026 Quarterly results released; Executive or board change; Other company announcement
• Dec 12, 2025 Other company announcement
• Nov 21, 2025 Bylaws or fiscal year changed
• Oct 30, 2025 Quarterly results released

Monolithic Power pays a dividend, but the yield is small: 0.62% as of October 28, 2026. It has raised its regular dividend for eight straight years, from $2.00 a share in fiscal 2020 to $6.24 in fiscal 2025. That is about 25.6% a year. In fiscal 2025, dividends used 45.8% of earnings and 42.8% of free cash flow (cash left after running and investing in the business). Buybacks totaled $646.5 million over fiscal 2021–2025, nearly all in fiscal 2024. Even so, the share count rose 7% from August 2021 to July 2026.

The stock has fallen hard in downturns. It dropped 72.3% in the 2008 financial crisis and took about 56 months to recover. It fell 27.9% in the 2020 COVID crash and recovered in just over a month. It lost 39.7% in the 2022 bear market and recovered in about eight months. With a yield under 1%, the stock offers little income, so returns depend mostly on the share price. A single stock carries more risk than a diversified fund.