Monolithic Power Systems price target raised to $1,200 from $800 at Oppenheimer

Investing.com - Oppenheimer raised its price target on Monolithic Power Systems (NASDAQ:MPWR) to $1,200 from $800 on Wednesday, while maintaining an Outperform rating on the stock. The company, currently trading at $989.43 with a market capitalization of $46.37 billion, has shown remarkable momentum, trading near its 52-week high.

The firm highlighted Monolithic’s position as the top 48V power supplier to all AI GPUs/XPUs including Nvidia, AMD, Amazon, Meta, and Google. Oppenheimer noted that increased module mix provides a 3-4x ASP multiplier that further boosts long-term growth potential. According to InvestingPro data, the company maintains strong financial health with impressive revenue growth of 34.3% and robust liquidity, as evidenced by a current ratio of 5.0.

Monolithic’s sales to Nvidia are down by approximately half this year to $200 million, according to the research note. This decline stems from Nvidia’s sourcing of discrete voltage regulators versus modules and delayed adoption of vertical power, which is weighing on Monolithic’s content in the near term.

Data center represents approximately 30% of Monolithic’s sales this year, based on Oppenheimer’s model. The automotive segment, accounting for 22% of sales, is positioned for outsized growth driven by content gains at two key customers - Tesla and Mercedes.

Communications, representing 11% of Monolithic’s business, was identified as another standout growth segment. Oppenheimer noted that Monolithic currently trades at 36x their CY27E EPS, compared to three-year and five-year averages of 34x and 38x. With a current P/E ratio of 25.8 and trading above its InvestingPro Fair Value, investors seeking deeper insights can access comprehensive valuation analysis and 17 additional ProTips through InvestingPro’s detailed research reports.

In other recent news, Monolithic Power Systems reported a significant boost in revenue for Q2 2025, reaching a record $664.6 million and surpassing forecasts. The company’s earnings per share were $4.21, exceeding the anticipated $4.11. In addition to these financial results, Monolithic Power Systems declared a quarterly dividend of $1.56 per common share, to be paid on October 15, 2025, maintaining its regular payout to shareholders.

Furthermore, KeyBanc Capital Markets raised its price target for Monolithic Power Systems to $1,050, highlighting the company’s substantial market share gains in Nvidia’s Blackwell Ultra AI chips. Needham also increased its price target for the company to $1,025, following discussions with Monolithic Power Systems’ executives about various growth drivers. These developments reflect the company’s strong performance and potential for future growth, as recognized by analysts.

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