WIth a market cap of $40.1 billion, Monolithic Power Systems, Inc. (MPWR) is a fabless semiconductor company that designs and markets high-performance analog and mixed-signal power solutions used across industrial, automotive, cloud computing, consumer, and communications applications. The company leverages proprietary process technologies and a global customer base spanning the United States, Asia, and Europe.

Shares of the Kirkland, Washington-based company have underperformed the broader market over the past 52 weeks. MPWR stock has dropped 6.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 14.8%. However, shares of the company have surged 44.4% on a YTD basis, outpacing SPX's 9.6% gain.

Looking closer, the chipmaker stock has lagged behind the Technology Select Sector SPDR Fund's (XLK) 18.9% return over the past 52 weeks. 

Shares of Monolithic Power Systems climbed 10.5% following its Q2 2025 results on Jul. 31, as adjusted EPS of $4.21 and revenue of $664.6 million, topping forecasts. The company also guided Q3 revenue to $710 million - $730 million, well above the consensus, reflecting strong demand for its power management solutions in AI and server applications.

For the fiscal year ending in December 2025, analysts expect MPWR's EPS to grow 24.6% year-over-year to $13.31. The company's earnings surprise history is mixed. It beat the consensus estimates in one of the last four quarters while missing on three other occasions.

Among the 16 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, two “Moderate Buys,” and four “Holds.”

This configuration is slightly more bullish than three months ago, with nine “Strong Buy” ratings on the stock.

On Aug. 4, Citi analyst Kelsey Chia raised Monolithic Power’s price target to $825 while maintaining a “Buy” rating.

As of writing, the stock is trading above the mean price target of $844.33. The Street-high price target of $950 suggests an 11.2% potential upside.