Monolithic Power Systems (MPWR) Reiterated at Buy by Stifel on Reaching $4B Target

Stifel analyst Tore Svanberg reiterated a Buy rating on Monolithic Power Systems (NASDAQ: MPWR).

The analyst commented, "MPWR has reached its prior annual revenue capacity target of $4bn, now setting its sights on a new capacity target of >$6bn, going to $8bn LT. It's not yet clear to us whether this agreement with GFS is included in the capacity expansion or incremental to the targets. The Singapore location of this long-term agreement also maintains MPWR's Asian-dominated supply chain and cost structure from proximity to the rest of its supply chain, while de-risking China exposure. In recent earnings calls, MPWR management has said it is expanding capacity for its existing processes (namely 60nm-class nodes), which the 300mm Singapore GFS fab supports, before ultimately moving to 40nm-class for the next generation. Given MPWR is deploying its own process and that it's supporting smart power stages in AI data centers as well as automotive and robotics applications, we think this is most likely an expansion of MPWR's low voltage VRM manufacturing capacity. At its investor day in March 2025, MPWR's expanded partner base was characterized as moving from 5 to 13 manufacturing partners since 2021, though it didn't specify whether that was dabs or companies, and we believe this agreement now represents an additional supply chain diversification via a new partner in GFS as well as a critical capacity expansion to support continued growth."

For an analyst ratings summary and ratings history on Monolithic Power Systems click here. For more ratings news on Monolithic Power Systems click here.

Shares of Monolithic Power Systems closed at $1203.75 yesterday.

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