Monolithic Power Systems delivered a strong Q2, with the market responding positively to its robust performance. Management attributed the outperformance to diversified revenue growth across end markets, citing initial shipments of power solutions supporting new ASIC-based AI products and sequential gains in storage and compute. CEO Michael Hsing emphasized the company’s transformation beyond traditional chip supply, stating, “We continue our transformation from being a chip-only semiconductor supplier to a full-service silicon-based solutions provider.” The quarter also benefited from the company’s focus on expanding its technology portfolio and global supply chain resilience.

Is now the time to buy MPWR? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Monolithic Power Systems’s Q2 Earnings Call

• Tore Svanberg (Stifel) asked about sequential growth drivers across end markets for Q3; CFO Bernie Blegen detailed enterprise data growth, a consumer seasonal uplift, and caution in storage and compute due to recent strength.
• Chris Caso (Wolfe Research) inquired about full-year visibility for enterprise data; Blegen reiterated the dynamic nature and short lead times, saying Q4 should be up sequentially but with limited long-range visibility.
• Quinn Bolton (Needham) sought clarity on sourcing dynamics for ASIC platforms; CEO Michael Hsing explained a mix of single and multiple sourcing approaches, emphasizing MPS’s strong customer focus and diverse solution capabilities.
• Ross Seymore (Deutsche Bank) questioned demand drivers outside enterprise data and the influence of tariffs; Blegen responded that cyclical recovery, not tariffs, is driving demand, with no material change in ordering patterns linked to trade policy.
• William Stein (Truist) requested updates on product development in modules, converters, and eMotion; Hsing confirmed module business is gaining traction across markets, while eMotion and data converters are contributing incrementally with long-term potential.

Catalysts in Upcoming Quarters

In future quarters, our analysts will closely watch (1) the pace and breadth of adoption for AI-optimized power solutions in enterprise data centers, (2) the timing and impact of new automotive and industrial platform ramps, and (3) the company’s ability to maintain diversified customer and geographic exposure to mitigate demand fluctuations. The evolution of inventory and order visibility will also be a critical signpost for sustained growth.

Monolithic Power Systems currently trades at $838.81, up from $712.38 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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