Strong Results Boosted Monolithic Power Systems (MPWR) in Q3

TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, all the major asset classes posted positive returns except fixed income assets outside the US. The strategy returned 4.00% (gross) and 3.78% (net) compared to a 2.78% return for the Russell Midcap Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, TimesSquare Capital U.S. Focus 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 5.52%, and its shares gained 50.57% of their value over the last 52 weeks. On December 12, 2025, Monolithic Power Systems, Inc. (NASDAQ:MPWR) stock closed at $946.51 per share, with a market capitalization of $45.344 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Monolithic Power Systems, Inc. (NASDAQ:MPWR) in its third quarter 2025 investor letter:

“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that are growing their shares of corporate IT budgets. Monolithic Power Systems, Inc. (NASDAQ:MPWR) designs and develops integrated power semiconductor solutions and power delivery architectures for computing, storage, automotive, industrial, communications, and consumer applications. Their stock climbed 26% after posting a solid second quarter with revenues at the high end of the guidance range and above the Street; earnings were also better. Upside to the quarter came from non-enterprise data center segments where the company is benefiting from a cyclical recovery as well as significant content growth.”

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, 42 hedge fund portfolios held Monolithic Power Systems, Inc. (NASDAQ:MPWR) at the end of the third quarter, which was 41 in the previous quarter. Monolithic Power Systems, Inc. (NASDAQ:MPWR) reported record revenue of $737.2 million in the third quarter of 2025, 10.9% higher than the second quarter of 2025 and 18.9% higher than Q3 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 Carillon Eagle Mid Cap Growth Fund’s views on the company. 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.