MPWR Stock Forecast & Price Target

Monolithic Power Systems is anticipated to achieve revenue growth exceeding $100 million in 2026 due to market share gains, particularly driven by its strong performance in the communications and server CPU power management sectors. The company is positioned as the fastest growing entity in the analog integrated circuit market, with sustained long-term revenue growth of approximately 20% and successful new product introductions contributing to increased estimates. Additionally, as MPS continues to secure significant contracts with major players like Ericsson, Nokia, and Samsung, its prospects for substantial revenue growth in multiple end markets remain robust.

Monolithic Power Systems faces significant risks that could hinder its growth, particularly if new datacenter platforms underperform, which may lead to a failure to achieve the projected 15-20% growth. Additionally, management anticipates weaker than typical seasonal performance, projecting an 8% sequential decline in revenue for 3Q25 and additional declines in 4Q25, further indicating potential revenue challenges. The company is also vulnerable to increased competition and potential inventory corrections at distributors, which could negatively impact its sales and overall financial performance.