Here’s What Lifted Monolithic Power Systems (MPWR) in Q3

ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy reported modest gains in the challenging environment, driven by monetary policy shifts, stabilizing earnings, and improving investor sentiment.  However, the strategy outperformed the Russell Midcap Growth Index, which returned 2.8%. The firm believes that the Strategy is well-positioned to benefit from its fundamental, bottom-up philosophy even though near-term volatility exists. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, ClearBridge Mid Cap Growth Strategy highlighted stocks such as Monolithic Power Systems, Inc. (NASDAQ:MPWR). Monolithic Power Systems, Inc. (NASDAQ:MPWR) is a semiconductor-based power electronics solutions provider. The one-month return of Monolithic Power Systems, Inc. (NASDAQ:MPWR) was 16.72%, and its shares gained 5.47% of their value over the last 52 weeks. On October 8, 2025, Monolithic Power Systems, Inc. (NASDAQ:MPWR) stock closed at $980.90 per share, with a market capitalization of $46.977 billion.

ClearBridge Mid Cap Growth Strategy stated the following regarding Monolithic Power Systems, Inc. (NASDAQ:MPWR) in its third quarter 2025 investor letter:

“Monolithic Power Systems, Inc. (NASDAQ:MPWR) also contributed meaningfully. The analog semiconductor company benefited from idiosyncratic execution and renewed confidence in its positioning within the AI supply chain, dispelling earlier concerns about market share erosion.”

Is Monolithic Power Systems, Inc. (MPWR) the Cheap Semiconductor Stock to Buy Now?

Monolithic Power Systems, Inc. (NASDAQ:MPWR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Monolithic Power Systems, Inc. (NASDAQ:MPWR) at the end of the second quarter, which was 47 in the previous quarter. Monolithic Power Systems, Inc. (NASDAQ:MPWR) reported record revenue of $664.6 million in the second quarter of 2025, 4.2% higher than the first quarter of 2025 and 31.0% higher than Q2 2024. While we acknowledge the risk and potential of Monolithic Power Systems, Inc. (NASDAQ:MPWR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Monolithic Power Systems, Inc. (NASDAQ:MPWR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Monolithic Power Systems, Inc. (NASDAQ:MPWR) and shared the list of high-growth semiconductor stocks that are profitable in 2025. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.