Monolithic Power (MPWR) | News Based Sentiment Analysis

• On October 1-3, 2025, Monolithic Power Systems reported record Q2 2025 revenue of $664.6 million, exceeding expectations, and earnings per share of $4.21, surpassing the anticipated $4.11. This represents a 31.0% year-over-year increase in revenue, demonstrating strong financial performance and setting a positive tone for the rest of the year. The company also declared a quarterly dividend of $1.56 per common share, payable on October 15, 2025, to shareholders of record as of September 30, 2025.
• Following the strong Q2 results, several analysts raised their price targets for MPWR. Citigroup increased its target from $825 to $1,100 on October 3, 2025, a 33.33% increase, citing positive trends in Enterprise Data, Storage, and Computing markets. KeyBanc Capital Markets also raised its price target to $1,050 from $950 (a 10.53% increase) due to significant market share gains in Nvidia's Blackwell Ultra AI chips, and Needham increased its target to $1,025 from $820 (a 25.00% rise) following discussions with company executives about multiple growth drivers.
• Despite reaching a new 52-week high of $954.81 on October 3, 2025, MPWR stock closed 1.26% lower that same day with a trading volume of $390 million. InvestingPro analysis indicated the stock appeared overvalued relative to its Fair Value, suggesting potential caution despite the positive momentum. The company's market capitalization stands at $45.7 billion, with a 1.91% increase in stock price over the last 12 months.
• Institutional investors continued to adjust their positions in MPWR during the second quarter. Mirae Asset Global Investments Co. Ltd. increased its stake by 4.0%, acquiring 2,989 shares valued at $56,874,000, while GC Wealth Management RIA LLC initiated a new stake, purchasing 714 shares valued at $522,000. Conversely, Janney Montgomery Scott LLC reduced its stake by 3.3% to 22,346 shares, valued at $16.34 million.
• Theodore Blegen, Executive Vice President and CFO, sold 2,260 shares of common stock on October 1, 2025, for a total of $2.74 million, at prices ranging from $902.61 to $917.17 per share. This transaction was executed under a pre-arranged Rule 10b5-1 trading plan adopted on February 26, 2025, and reduced Blegen’s direct holdings to 37,940 shares.
• Monolithic Power Systems is scheduled to announce its Q3 2025 earnings on October 29, 2025. Expectations are high following the strong Q2 performance and positive analyst outlooks, and the earnings release will be a key catalyst for the stock.

The Investment Story: October proved to be a month of strong financial results and bullish analyst sentiment for Monolithic Power Systems, though tempered by some insider selling and valuation concerns. The company is capitalizing on growth in AI and automotive markets, driving revenue and earnings to record levels.

What It Means for Investors: The positive developments suggest continued growth potential for MPWR, particularly in the AI space. However, investors should be mindful of the stock's valuation and potential for short-term volatility, especially given the CFO's recent stock sales. The upcoming Q3 earnings release will be crucial in confirming the company's trajectory.

Looking Ahead: Investors should closely watch the Q3 2025 earnings announcement on October 29, 2025, for confirmation of continued growth and insights into the anticipated AI power business collaborations with AMD, Google, and Amazon. Monitoring institutional investor activity and any further analyst updates will also be important.

The Bottom Line: Monolithic Power Systems is demonstrating strong momentum, fueled by its position in key growth markets. While valuation remains a consideration, the company's solid financial performance and positive outlook make it an attractive investment for those seeking exposure to the AI and automotive sectors.