Monolithic Power Systems (MPWR) is gaining investor attention as a high-conviction semiconductor supplier benefiting from surging demand for power management solutions in AI-driven data centers. The company's advanced DC-DC converters and power delivery systems are integral to next-generation AI server architectures.
- MPWR’s data center segment revenue rose to 41% of total sales in Q4 2025, up from 28% YoY
- Company reported 32% YoY revenue growth in Q4 2025, driven by AI infrastructure demand
- Projected data center revenue of $1.8 billion by 2027, representing over 50% of total sales
- Long-term supply agreements with Tier-1 server OEMs and AI chipmakers
- AI server shipments projected to grow at a 54% CAGR through 2028
- Stock outperformed semiconductor index by 22% YTD, reflecting market confidence
Monolithic Power Systems (MPWR) is emerging as a pivotal player in the expanding AI data center infrastructure ecosystem, driven by the escalating power demands of high-performance computing systems. As data centers scale to support generative AI workloads, the need for efficient, high-density power delivery has intensified. MPWR’s silicon-based DC-DC converters and integrated power management ICs are being specified in servers from major cloud infrastructure providers, where power efficiency directly impacts operational costs and thermal performance. The company reported a 32% year-over-year revenue increase in Q4 2025, with data center-related sales accounting for 41% of total revenue—up from 28% in the same quarter the prior year. This shift reflects growing design wins with system integrators deploying AI accelerators like NVIDIA’s H100 and Blackwell GPUs, which require robust, low-latency power regulation. MPWR’s proprietary PowerSoC technology enables higher power density and reduced board space, making it a preferred choice in compact, high-throughput server designs. Market analysts project MPWR’s data center segment revenue to reach $1.8 billion by 2027, representing over half of its total semiconductor sales. This growth trajectory is supported by long-term supply agreements with Tier-1 server OEMs and strategic partnerships with leading AI chipmakers. As global AI server shipments are forecasted to grow at a 54% CAGR through 2028, MPWR’s position in the power delivery stack is expected to strengthen further. Investors are responding with increased interest: MPWR’s stock has outperformed the broader semiconductor index by 22% year-to-date, reflecting confidence in its AI-driven growth engine. The company’s capital expenditures for advanced packaging and 5nm-compatible process nodes are aligned with the needs of next-gen data center systems, reinforcing its technical leadership.