Skip to Content

Monolithic Power Systems Inc MPWR

Rating as of

Morningstar’s Analysis

Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price


5-Star Price


Economic Moat


Capital Allocation


Monolithic Power’s Cutting-Edge New Products Gaining Share and Expanding Margins; Raise FVE to $340

Analyst Note

| William Kerwin |

We’re raising our fair value estimate for wide-moat Monolithic Power Systems to $340 per share from $315 after the power chipmaker reported first-quarter sales above the top end of its guidance range and guided for rapid growth. We think MPS’ cutting-edge chip designs present a compelling value proposition to customers looking to save energy or space in systems, and will enable MPS to sustainably steal market share from traditional analog incumbents. We think 54% year-over-year top line growth—well above the broader chip market—is evidence of this thesis playing out, with 37% of first-quarter revenue coming from “new” products introduced in the last three years. The success of new products (like MPS’ flagship QSMod) also reinforces our expectations that MPS will steadily expand its gross margins over the next 10 years. We forecast strong new product mix, which buoys average selling price, and manufacturing efficiency gains to drive GAAP gross margins above 60% in 2030, compared to 55% in 2020. The rate of new product adoption is even impressing management, who now expects to sustain above 20% annual growth with demand normalizing. We’re now expecting full year 2021 sales growth of 31%, inclusive of tougher year-over-year comparisons in the second half after 50%+ year-over-year growth next quarter. At our updated valuation, we think shares are fairly valued.

Read Full Analysis

Company Profile

Business Description

Monolithic Power Systems is an analog and mixed-signal chipmaker, specializing in power management solutions. The firm’s mission is to reduce total energy consumption in end systems, and it serves the computing, automotive, industrial, communications, and consumer end markets. Monolithic Power uses a fabless manufacturing model, partnering with third-party chip foundries to host its proprietary BCD process technology.

5808 Lake Washington Boulevard NE
Kirkland, WA, 98033
T +1 425 296-9956
Sector Technology
Industry Semiconductors
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 2,209

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.