Monolithic Power Systems, Inc. (MPWR): A Bull Case Theory 

We came across a bullish thesis on Monolithic Power Systems, Inc. on X.com by Fierce Beast. In this article, we will summarize the bulls’ thesis on MPWR. Monolithic Power Systems, Inc.’s share was trading at $855.18 as of September 10th. MPWR’s trailing and forward P/E were 22.38 and 39.06 respectively according to Yahoo Finance.

Monolithic Power Systems, Inc. (MPWR) appears positioned for meaningful upside, driven by its strong foothold in enterprise AI and semiconductor markets. The company’s ASIC business, already fast-growing, is likely to benefit from continued AI capital expenditure, potentially outpacing competitors like NVIDIA in certain segments. Enterprise Data is emerging as a significant driver, with projected growth of 40–50% year-over-year in the second half of the year. This segment could account for more than half of MPWR’s business within a few years, particularly if the company captures a larger share of NVIDIA’s spend than the market currently anticipates. Meanwhile, the non-enterprise Analog business may be bottoming out, providing further upside potential.

MPWR has a long track record of disciplined execution under an owner-operator leadership model, gradually taking market share from competitors such as Texas Instruments (TXN) across multiple end markets, including robotics, EVs, and AI chips. While the company faced temporary setbacks, including the loss of NVIDIA exclusivity, current valuations appear overly penalized, as consensus growth estimates for non-Enterprise Data segments remain conservative. The short-term outlook is strong, with near-term enterprise AI demand expected to drive revenue beats over the next few quarters.

Overall, MPWR presents a compelling investment case with a combination of resilient long-term growth, structural market share gains, and a growing contribution from high-margin enterprise AI products. At current levels, the stock appears underappreciated, with potential upside of roughly 25% to a fair value estimate of $922 per share. While caution is warranted due to recent tepid results in comparable analog segments, the company’s robust strategy and exposure to secular growth markets make it an attractive opportunity for investors seeking both near- and long-term upside.

Previously we covered a bullish thesis on Monolithic Power Systems, Inc. (MPWR) by Hidden Market Gems in April 2025, which highlighted the company’s fabless operations, high margins, strong pricing power, diversified customer base, and AI exposure. The stock has appreciated approximately 52.2% since our coverage. The thesis still stands as MPWR executes on growth. Fierce Beast shares a similar perspective but emphasizes the accelerating Enterprise Data segment, fast-growing ASIC business, and potential to capture more NVIDIA market share.

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Disclosure: None.