StoneX has initiated coverage of Monolithic Power Systems Inc. (NASDAQ: MPWR) with a buy recommendation, assigning a price target of $1,800 per share. The current stock price stands at $1,219.36, implying an estimated upside of approximately 48%.
The brokerage highlighted Monolithic Power Systems' focus on power management solutions for energy-efficient applications, including consumer electronics and data centers. The company's monolithic circuit designs are positioned as a cost-effective alternative to traditional solutions.
In the second quarter of 2026, Monolithic Power Systems reported revenue of $980.6 million, a 22% increase from the prior quarter and a 48% rise year-over-year. Adjusted earnings per share reached $6.50, exceeding Wall Street expectations. Management also raised its annual outlook for corporate data segment growth, which expanded by more than 160% year-over-year.
StoneX's target falls within a broader analyst range of $1,575 to $2,100. Truist Securities set a target of $1,889, while KeyBanc and Needham assigned targets of $2,100 and $2,000, respectively. The stock closed down 0.54% at $1,219.36 on Tuesday.
Monolithic Power Systems' gross profit margin stands at 55%, with a return on assets of 18.5%. The company's performance has been supported by strong demand in high-performance computing and AI-driven infrastructure, aligning with trends in energy efficiency and data center expansion.
