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Investing.com -- Monolithic Power Systems (NASDAQ:MPWR) reported second-quarter results that exceeded analyst expectations and provided an upbeat outlook for the third quarter, sending shares surging 4.9% in trading.
The fabless semiconductor company posted adjusted earnings of $4.21 per share for the quarter ended June 30, 2025, surpassing the analyst estimate of $4.11. Revenue climbed to $664.6 million, beating the consensus estimate of $650.63 million and representing a 31.0% increase YoY from $507.4 million in the same quarter last year.
Investors responded positively to the company’s strong performance and optimistic guidance, driving the stock’s nearly 5% gain. For the third quarter, Monolithic Power Systems forecasts revenue between $710 million and $730 million, significantly above analyst expectations of $675.9 million.
"Our proven, long-term growth strategy remains intact as we continue our transformation from being a chip-only, semiconductor supplier to a full service, silicon-based solutions provider," said Michael Hsing, CEO and founder of MPS.
The company saw substantial growth across most of its end markets, with Storage and Computing revenue jumping to $195.3 million from $115.0 million in the year-ago quarter. Automotive revenue also showed impressive growth, reaching $145.1 million compared to $87.2 million a year earlier.
Monolithic Power’s non-GAAP gross margin was 55.5% for the quarter, slightly lower than the 55.7% reported in the second quarter of 2024. The company expects third-quarter non-GAAP gross margin to be between 55.2% and 55.8%.
For the first half of 2025, Monolithic Power reported total revenue of $1.3 billion, a 34.9% increase from the same period in 2024, demonstrating continued momentum in the company’s business operations.
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