Monolithic Power Systems, Inc.

Monolithic Power Systems, Inc. is an American fabless semiconductor company that designs and develops high-performance analog and mixed-signal power management solutions for the storage and computing, enterprise data, automotive, communications, consumer, and industrial end markets, generating $2.79 billion in revenue in fiscal 2025. Founded in 1997 by CEO Michael Hsing, who still runs the company, MPS has spent two decades quietly building one of the best analog engineering franchises in the semiconductor industry — and the last three years riding an AI infrastructure build-out that has made it one of the most expensive stocks in the sector.

This is a story about a genuinely excellent business being priced as though the next decade is already in the books. MPS possesses a genuine technological edge in monolithic power integration — putting more power-management functionality onto a single piece of silicon than competitors can — and that edge has translated into an enterprise data power-management franchise that, by management's account, is accelerating toward 85% year-over-year growth in 2026. But the company earns 92% of its revenue from Asia, operates substantial manufacturing and testing facilities in China, has just emerged from a financial restatement and material-weakness finding, and trades at roughly 112 times trailing earnings as its CFO departs. The file turns on whether the enterprise data growth runway is long and wide enough to grow into a multiple that currently prices in something close to perfection.