Monolithic Power Systems

Monolithic Power Systems (MPS) designs chips and modules that control and convert electric power. It does not own wafer factories; partner foundries make its chips with its own process technology. Its products go into AI servers, cloud data centers, cars, memory and storage, network equipment, industrial machines and consumer devices. In Q2 2026, Enterprise Data (power for AI and server processors) gave 38.8% of revenue, Storage and Computing 20.4%, Automotive 16.0%, and Communications 13.4%.

MPS sells mostly through distributors, which gave 88% of sales in the first half of 2026, and 94% of Q2 2026 revenue shipped to customers in Asia. It makes money from the sale of these parts, and it returns cash to shareholders with a quarterly dividend of $2.00 per share and buybacks. Its founder, Michael Hsing, is still the CEO.

The market prices MPS as a supplier whose growth depends on one wave of AI server orders that can stop as fast as it started. In Q2 2026, Enterprise Data revenue grew 164% from a year earlier and became the largest end market, so a pause in AI spending or a lost design at a large AI chip customer would hit revenue quickly. Three company problems add to this fear. On October 9, 2026, the US International Trade Commission opened a patent case from Vicor against MPS and 19 other companies about vertical power delivery for AI servers, and Vicor asks for an import ban.

In February 2026, MPS restated its 2024 and 2025 results for a tax error, and the material weakness in its controls was still not fixed at June 30, 2026. The company also has an interim CFO since its CFO retired in early 2026. For the gap to close, revenue must keep growing in other end markets as well as in AI, and the checks are clear. Q3 2026 revenue must reach the $1,140 million to $1,160 million guidance, with gross margin near 55% or higher.

Enterprise Data must grow at least 130% in 2026, the floor management set in July. Automotive must grow in the mid-teens. The ITC case must end without an import ban on MPS parts. The 2026 annual report must show the material weakness fixed.

The GlobalFoundries plant in Singapore must start volume production for MPS in early 2027. The first evidence comes with the Q3 2026 report on October 29, 2026, and more comes with the 2026 annual report in February 2027. If these checks pass, the gap can close over the next three to five quarters. If AI orders slow or the ITC case goes against MPS, the gap can stay into 2028.

1. Oct 29, 2026Pending

   Q3 2026 results: AI server revenue and Q4 guidanceRevenue at or above the $1,140 million to $1,160 million guidance, gross margin near 55% or higher and Q4 guidance that grows again pass; revenue below guidance or a Q4 guide that falls fails.
2. Feb 2027 · est.Pending

   Full-year 2026 results and annual report: Enterprise Data growth and controlsEnterprise Data growth of 130% or more for 2026, a material weakness that management reports as fixed, and a permanent CFO pass; slower Enterprise Data growth or a weakness still open fails.
3. Q1 2027 · est.Pending

   GlobalFoundries Singapore volume productionVolume production of MPS parts in Singapore in early 2027, as planned on September 9, 2026, passes; a delay of the start fails.

Every passed and failed checkpoint across all picks

MPS has no debt and no borrowings at June 30, 2026. Cash is cash, cash equivalents and short-term investments. Read more

• Enterprise Data revenue grew 164% from a year earlier in Q2 2026 and gave 38.8% of revenue. This revenue depends on the AI server plans of a small number of large chip and cloud companies. A pause in AI spending, a design loss at the next AI platform, or excess stock at distributors can cut revenue fast.
• Vicor asks the US International Trade Commission to ban imports of vertical power delivery products that it says break its patent. The commission opened the case on October 9, 2026, and MPS is a respondent. An exclusion order could block MPS parts for AI servers from the US, unless MPS changes the design or settles.
• Most sales go through Asia: in Q2 2026, $502 million of $981 million in revenue shipped to China, and a large part of MPS's manufacturing capacity is in China. New US or Chinese export controls, tariffs or retaliation can disturb sales or supply. Some customers ask for supply chains outside China, which cost more.
• In February 2026, MPS restated its 2024 and 2025 financial statements because of a non-cash error in deferred income taxes, and the material weakness in its internal control was not fixed at June 30, 2026. The CFO retired in early 2026, and the corporate controller is the interim CFO. A shareholder class action from February 2025 is also pending.
• Two distributors gave 28% and 15% of Q2 2026 revenue. A distributor can end its agreement with notice, which can cause a short break in sales.

• October 9, 2026The US International Trade Commission opened a patent investigation (337-TA-1526) after a complaint that Vicor filed on September 9, 2026. MPS and its affiliates in China are among 20 respondents, with Delta, Infineon, Foxconn, Quanta and others. The case is about vertical power delivery systems for AI and cloud servers. Vicor asks for an exclusion order and cease-and-desist orders. The case is at an early stage.
• October 8, 2026MPS said that it will report Q3 2026 results on October 29, 2026, after the market closes.
• September 10, 2026MPS declared a Q3 2026 dividend of $2.00 per share, payable on October 15, 2026, to holders of record on September 30, 2026.