Monolithic Power's Enterprise Data revenue set to reaccelerate in 2H25: analysts

Monolithic Power System's (NASDAQ:MPWR) second quarter financial results were supported by 70% year-over-year growth in its Storage and Computing segment, but analysts believe the second half of the year and into 2026 will be fueled more by its Enterprise Data segment.

Shares climbed 4% during early market action on Friday.

"This segment is expected to grow 20–30% Q/Q in 3Q25, supported by design wins across multiple customers, including initial shipments for next-gen ASIC-based AI platforms," said Needham analysts, led by N. Quinn Bolton, in an investor note. "Management noted the company is engaged on ASIC projects with multiple large and emerging hyperscalers."

Needham reiterated its Buy rating and nudged its price target to $820 from $800.

"Looking ahead to CY26, management indicated that revenue could grow in the ~+15% range Y/Y, reflecting the company's typical outperformance of ~+10% above broader end-market trends," Bolton added. "This is in line with our previous +15% Y/Y estimate. Revenue growth should be broad-based, but new ASIC program ramps in Enterprise Data should be a key contributor."

Citi reiterated its Buy rating and $785 price target.

"MPWR guided 3Q25 revenue to $720.0 million (up 8% QoQ), above our estimate of $680.0 million (up 4% QoQ) and Consensus of $679.4 million (up 4% QoQ)," said Citi analysts Kelsey Chia and Christopher Danely, in a note. "Non-GAAP gross margin was guided down to 55.5%, slightly below Consensus of 55.6%."

Oppenheimer maintained its Outperform rating and $800 price target as investment firms across the board were satisfied with the results and outlook.

"We see ED as a leading growth segment in 2026 supported by content on all major AI accelerators," said Oppenheimer analysts, led by Rick Schafer, in a note. "Ex-Nvidia (NVDA), we see most/all major GPU/XPU AI accelerator programs moving to vertical power, playing to MPS’ strengths. Overall, upcycle is driving demand as channel inventories remain low across geos."

"We estimate ~50% share at NVDA, down from nearly 100% in 2024," he added. "NVDA share loss offset by AI wins at Meta (META), Amazon (AMZN), Google (GOOG), and AMD (AMD). We expect Microsoft (MSFT) Maia to contribute beginning next year as well."

Monolithic competitors Texas Instruments (TXI) and Analog Devices (ADI) were down 1% and 0.5%, respectively.