Monolithic Power Systems

Monolithic Power Systems, Inc. (NASDAQ:MPWR) is a leading global provider of high-performance, semiconductor-based power electronics solutions that has established itself as a pioneer in the power management semiconductor industry. Founded in 1997 by Michael Hsing, who continues to serve as CEO, the company began with a clear goal: to put an entire power system onto a single chip. Hsing, an electrical engineer with extensive experience in power semiconductor design, established MPS with the vision of creating highly integrated power management solutions that would outperform traditional discrete implementations. The company is headquartered in Kirkland, Washington, and operates as a global fabless semiconductor company, meaning it designs chips but outsources manufacturing to specialized foundries. MPS designs, develops, and markets power management solutions for communications, storage and computing, consumer electronics, industrial, and automotive markets, in addition to supporting the electrification of transportation. The company differentiates itself through its proprietary BCD (Bipolar-CMOS-DMOS) process technology, which enables highly integrated power management solutions with superior performance and efficiency. MPS provides energy-efficient DC to DC converter ICs that are used to convert and control voltages of various electronic systems, along with digital, analog, and mixed-signal integrated circuits. In 2024, the company achieved record annual revenue of $2.21 billion, marking a 21.2% increase from the previous year, with an impressive net income of $1.79 billion representing an extraordinary 81.0% net profit margin. The company has been particularly successful in capturing demand from AI and data center applications, with Enterprise Data revenue growing by 121.7% in 2024. MPS was added to the S&P 500 index in February 2021, cementing its status as one of the leading semiconductor companies. The company now operates in more than 15 locations worldwide and employs approximately 4,020 people as of 2024. MPS's success is built on continuous innovation, with the company launching next-generation power solutions for AI accelerators and introducing new 48V power architecture solutions for data centers and automotive applications throughout 2024. The company serves a diverse customer base across multiple end markets including consumer electronics, automotive, industrial equipment, telecommunications infrastructure, and enterprise data centers. As power efficiency becomes increasingly critical across all electronic devices, particularly with the explosive growth of AI and electric vehicles, Monolithic Power Systems is well-positioned to capitalize on these long-term secular trends driving demand for advanced power management solutions.