Monolithic Power Systems, Inc.

NASDAQ Global Select
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Bullish +75

Analysts Are Upgrading Monolithic Power Systems, Inc. (NASDAQ:MPWR) After Its Latest Results

📉 Monolithic Power Systems (MPWR) shares dipped 3.0% to $1,583 following its recent earnings report, despite a generally positive reception from investors.

💰 The company reported quarterly revenues of $804 million, which exceeded analyst expectations by 2.8%.

🤖 Statutory earnings per share (EPS) of $3.92 came in exactly in line with analyst consensus estimates.

📈 Analysts have collectively revised their 2026 revenue forecast upward to $3.7 billion from a prior expectation of $3.39 billion.

💹 Per-share earnings for 2026 are now projected to rise by 40% to $19.31, reflecting increased optimism about the company's future.

🚀 The consensus analyst price target has been raised by 27% to $1,797 following these recent upgrades and results.

📊 Analysts predict that MPWR will experience a 35% annualized growth rate through 2026, significantly outpacing the industry average of 21%.

🤝 There is a tight range of price targets among analysts, with estimates spanning from $1,500 (pessimistic) to $2,000 (optimistic).

📉 The article notes that despite the upgrades, Monolithic Power Systems currently shows two warning signs in its investment analysis.

⚠️ Readers are advised that long-term earnings power is considered more important than short-term profits when evaluating the stock.

❗️This analysis is provided by Simply Wall St and includes a disclaimer that it is not intended as specific financial advice.

Bullish Signals
  • Revenue came in 2.8% ahead of expectations at US$804m, with statutory earnings per share hitting US$3.92.
  • Analysts have increased their 2026 revenue consensus forecast to US$3.70b, reflecting a major 25% improvement over the last 12 months.
  • Per-share earnings are expected to shoot up 40% to US$19.31 by 2026, up from a prior anticipated EPS of US$17.07.
  • Analysts have increased their price target by 27% to US$1,797, signaling improved confidence in the company's intrinsic value.
  • The most optimistic analyst has set a price target of US$2,000 per share.
  • Monolithic Power Systems is forecast to grow at a 35% annualized rate through 2026, significantly outpacing the wider industry average of 21%.
  • Historical growth of 19% per annum over the past five years sets a strong foundation for this accelerated future trajectory.
Risk Factors
  • Shares of Monolithic Power Systems (MPWR) fell 3.0% to US$1,583 following the earnings report, indicating initial market skepticism despite meeting expectations.
  • The company reported a 'workmanlike' result where revenues grew only 2.8% above expectations and EPS exactly matched analyst appraisals, showing a lack of surprise or significant beat.
  • Analyst consensus forecasts for 2026 remain highly aggressive at US$3.70b revenue, implying high valuation expectations that could be vulnerable to future downturns in the power management semiconductor sector.
  • The article explicitly states that Monolithic Power Systems is showing '2 warning signs' in the company's investment analysis, suggesting underlying fundamental risks are present.
  • MPWR is priced at US$1,583 with a recent analyst price target of US$1,797, yet the most pessimistic analyst values it at only US$1,500 per share, indicating significant disagreement and downside risk within the analyst community.
  • Analyst forecasts project revenue growth of 25% over the next two years (up to 2026), which relies on a major acceleration that may prove difficult to sustain if market conditions slow down.
Full Analysis
Monolithic Power Systems (MPWR) saw shares initially dip 3% to $1,583 after releasing quarterly results that were deemed "workmanlike" rather than transformative. The company reported quarterly revenues of $804 million, which exceeded expectations by 2.8%, and statutory earnings per share of $3.92, exactly in line with analyst estimates. Despite the lack of a significant earnings surprise, the subsequent analyst reaction has been overwhelmingly positive, leading to several upgrades. Following the report, a consensus of 15 analysts revised their full-year revenue forecast for Monolithic Power Systems upward to $3.70 billion for 2026, an increase from the prior expectation of $3.39 billion. Similarly, projected per-share earnings for 2026 were raised to $19.31 from a previous estimate of $17.07, reflecting a significant jump in analyst optimism regarding the company's future profitability. This shift in sentiment was further evidenced by an increase in the average consensus price target from its prior level to $1,797, representing a 27% hike based on recent performance and improved long-term outlooks. Looking beyond the immediate quarter, analysts project Monolithic Power Systems will accelerate its growth significantly, forecasting an annualized growth rate of 35% through the end of 2026. This projected acceleration contrasts sharply with the company's historical growth of roughly 19% over the last five years and outpaces the wider industry average forecast of 21%. While analysts note a tight range in their valuations, with targets ranging from $1,500 to $2,000, indicating confidence in their collective model, they also caution investors to focus on long-term earnings power rather than short-term fluctuations. Despite these bullish upgrades and positive growth projections, the article notes that the stock still presents two specific warning signs identified by the company's own investment analysis framework.