Financial Data and Key Metrics Changes - The meeting reported that 43,900,000 shares of common stock were represented, comprising 91.7% of the outstanding shares as of the record date [12] - The voting results showed that 40,700,000 shares were in favor of the executive compensation proposal, indicating strong approval from shareholders [13] Business Line Data and Key Metrics Changes - No specific data on individual business lines was provided in the meeting Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting Company Strategy and Development Direction and Industry Competition - The company proposed to amend and restate its certificate of incorporation to declassify the Board of Directors, indicating a move towards more shareholder-friendly governance [6][14] - A proposal was made to allow shareholders holding 10% of common stock the right to call a special meeting, reflecting a trend towards increased shareholder engagement [10][14] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting Other Important Information - The appointment of Ernst and Young as independent auditors for the fiscal year ending December 31, 2025, was ratified with 43,900,000 shares in favor [13] - The board of directors was successfully re-elected, with significant support for all nominated directors [12][13] Q&A Session Summary Question: Were there any questions from the attendees? - There were no questions raised during the Q&A session [15]

Core Insights - The semiconductor chip demand is expected to exceed previous seasonal levels due to changes in international circumstances and the construction of AI data centers, leading to a strong performance in the IC design industry [3][4]. Group 1: Industry Performance - The top ten fabless IC design companies achieved a combined revenue of approximately $77.4 billion in Q1 2025, marking a 6% quarter-over-quarter increase and a 44% year-over-year increase [4][5]. - NVIDIA led the revenue rankings with $42.4 billion in Q1 2025, reflecting a 12% quarter-over-quarter increase and a 72% year-over-year increase [4][5]. - Qualcomm's revenue for Q1 2025 was approximately $9.5 billion, down 6% from the previous quarter, impacted by seasonal declines and increased competition from Apple's in-house chips [6][7]. Group 2: Company-Specific Developments - AMD reported Q1 2025 revenue of nearly $7.4 billion, a 3% decrease from the previous quarter but a 36% increase year-over-year, with plans to ramp up production of the new MI350 platform [5][6]. - Broadcom achieved a record semiconductor revenue of $8.3 billion in Q1 2025, a 15% year-over-year increase, driven by AI server ecosystem expansion [5][6]. - Marvell's revenue reached approximately $1.9 billion in Q1 2025, a 9% quarter-over-quarter increase, supported by strong demand for AI server-related products [6][7]. Group 3: Emerging Trends - Realtek's revenue increased by 31% to over $1.1 billion in Q1 2025, driven by inventory increases from PC clients and rising demand for Wi-Fi 7 [7]. - MediaTek's revenue grew to approximately $4.7 billion in Q1 2025, benefiting from increased demand for its mobile chipsets in mainland China [6][7]. - OmniVision's revenue slightly decreased by 2% to $732 million in Q1 2025, but the company made significant progress in image sensors and automotive electronics [7].

Core Insights - The semiconductor chip demand has exceeded typical seasonal levels due to changes in international circumstances and the construction of AI data centers, leading to a strong performance in the IC design industry in Q1 2025 [1] Group 1: Industry Performance - The top ten fabless IC design companies reported a combined revenue of approximately $77.4 billion in Q1 2025, marking a quarter-over-quarter increase of about 6% and a year-over-year increase of 44% [2] - NVIDIA maintained its position as the top revenue earner with $42.4 billion in Q1 2025, reflecting a 12% quarter-over-quarter increase and a 72% year-over-year increase [4] - Broadcom achieved a record high semiconductor revenue of $8.3 billion in Q1 2025, representing a 15% year-over-year growth [5] Group 2: Company-Specific Developments - AMD's revenue in Q1 2025 was approximately $7.4 billion, a 3% decrease from the previous quarter but a 36% increase compared to the same period in 2024 [4] - Qualcomm's revenue for Q1 2025 was around $9.5 billion, down 6% quarter-over-quarter due to seasonal factors and increased competition from Apple's in-house chips [6] - Marvell's revenue reached nearly $1.9 billion in Q1 2025, a 9% increase from the previous quarter, driven by strong demand for AI server-related products [6] Group 3: Emerging Trends - The AI data center sector is significantly impacting revenue growth, with companies like NVIDIA and Broadcom expanding their offerings in AI networking solutions [5] - Realtek reported a remarkable 31% quarter-over-quarter revenue increase to over $1.06 billion, driven by increased inventory from PC clients and rising demand for Wi-Fi 7 and automotive Ethernet [6] - Chipmakers are actively seeking growth opportunities in emerging fields such as AI smartphones and automotive applications to counteract seasonal declines [6]

Core Viewpoint - The article discusses the investment thesis for Monolithic Power Systems (NASDAQ: MPWR), highlighting its valuation multiples being near historically low levels and expressing strong conviction in the company's potential for growth [1]. Company Overview - Monolithic Power Systems is positioned in the semiconductor sector, which is characterized by high barriers to entry and oligopolistic market structures [1]. - The analyst has a beneficial long position in MPWR shares, indicating confidence in the company's future performance [1]. Investment Strategy - The investment approach emphasizes growth at a reasonable price, focusing on mid- to long-term investment horizons [1]. - The analyst expresses a preference for investing in larger companies, as smaller firms often carry underestimated risks [1]. Analyst Background - The analyst has a background in mechanical engineering and has transitioned from the oil and gas sector to focus on technology investments, particularly in semiconductors, robotics, and energy [1]. - The analyst holds a CFA Level II certification and is licensed by the Brazilian Securities Commission as both a portfolio manager and investment consultant [1].

Core Insights - Khaveen Investments is a global investment advisory firm focused on serving high-net-worth individuals, corporations, associations, and institutions [1] - The firm offers a wide range of services including market and security research, business valuation, and wealth management [1] - The flagship Macroquantamental Hedge Fund maintains a diversified portfolio across various asset classes, geographies, sectors, and industries [1] - The investment approach integrates top-down and bottom-up analysis, utilizing global macro, fundamental, and quantitative strategies [1] - Core expertise lies in disruptive technologies such as Artificial Intelligence, Cloud Computing, 5G, Autonomous and Electric Vehicles, FinTech, Augmented and Virtual Reality, and the Internet of Things (IoT) [1]

Core Viewpoint - Monolithic Power Systems (MPWR) has demonstrated resilience in a challenging technology sector, achieving a total return of approximately +8% in 2025, contrasting with the Technology Select Sector SPDR Fund's return of -8% [2][4]. Financial Performance - The company reported a 39% increase in total revenues, reaching nearly $638 million, surpassing analyst expectations by about 1% [4]. - Adjusted earnings per share (EPS) rose by almost 44% to $4.04, also exceeding forecasts by approximately 1% [4]. - For Q2, the company provided revenue guidance indicating a growth of 28% at the midpoint, which is nearly 3% above expectations [4]. Market Dynamics - Monolithic's stock experienced a 9% increase following its February earnings release and nearly 6% after the May 1 earnings report, although it still trades about 34% below its 52-week high [3]. - The company is facing challenges due to a decline in revenue from its Enterprise Data segment, which dropped 11% year-over-year and 31% from Q4 2024, largely attributed to its relationship with NVIDIA [5][6]. Diversification Strategy - Monolithic's revenue is diversified, with the Enterprise Data segment accounting for only 33% of total revenue, while other segments grew by over 40% year-over-year [6]. - The company continues to secure design wins in the Enterprise Data market and anticipates revenue recovery in the latter half of the year [6]. Supply Chain and Tariff Management - The company expects no significant impact from tariffs, as approximately 37% of its revenue is derived from China, supported by a "China for China" supply chain strategy [7]. Analyst Outlook - Analysts project a 12-month price target for Monolithic at $779.83, indicating a potential upside of 22.10% from the current price of $638.67 [9]. - Despite mixed updates from Wall Street regarding price targets, the average indicates a solid upside potential of 14% [8][9]. Long-Term Investment Perspective - The semiconductor industry is characterized by cyclicality, making future stock performance uncertain; however, Monolithic's long-term investment case remains strong due to the increasing demand for advanced chips [10][11].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 000-51026 Monolithic Power Systems, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or or ...

Core Insights - Monolithic Power Systems, Inc. (MPWR) reported strong first-quarter 2025 results, with adjusted earnings and revenues exceeding the Zacks Consensus Estimate [1] Financial Performance - Net income on a GAAP basis was $133.8 million or $2.79 per share, up from $92.5 million or $1.89 per share year-over-year, driven by top-line growth [3] - Non-GAAP net income increased to $193.8 million or $4.04 per share from $137.5 million or $2.81 per share in the prior-year quarter, surpassing the Zacks Consensus Estimate by 4 cents [3] - Revenues reached $637.6 million, a 39.2% increase from $457.9 million in the year-ago quarter, beating the Zacks Consensus Estimate of $635 million [4] Revenue Breakdown by End Markets - Storage and Computing revenues were $188.5 million, up 77.7% year-over-year, driven by strong demand for memory and notebook solutions, exceeding the Zacks Consensus Estimate of $177.57 million [5] - Automotive revenues contributed $144.9 million, compared to $87.1 million in the year-ago quarter, though it missed the Zacks Consensus Estimate of $148.34 million [6] - Industrial revenues increased to $42.6 million from $30.2 million year-over-year, slightly beating the Zacks Consensus Estimate of $42.16 million [6] - Communications end market revenues were $71.7 million, up from $46.7 million year-over-year, but fell short of the Zacks Consensus Estimate of $73.27 million [7] - Consumer end market revenues improved to $56.9 million from $38.1 million year-over-year, missing the Zacks Consensus Estimate of $58.92 million due to lower gaming revenues [7] Operational Metrics - Non-GAAP gross margin remained stable at 55.7%, while non-GAAP operating expenses rose to $133.5 million from $103.4 million in the prior-year period [8] - Non-GAAP operating income increased to $221.5 million from $151.6 million year-over-year [8] Cash Flow and Liquidity - Operating cash flow for the quarter was $256.4 million, compared to $248 million in the prior-year quarter [10] - As of March 31, 2025, cash and cash equivalents totaled $637.4 million, with $105.8 million in other long-term liabilities [10] Future Outlook - For Q2 2025, the company estimates revenues between $640 million and $660 million, with non-GAAP gross margin expected to be between 55.2% and 55.8% [11] - GAAP gross margin is anticipated to be in the range of 54.9% to 55.5%, with GAAP operating expenses projected between $189.0 million and $195.0 million [11]

Core Insights - Monolithic Power (MPWR) reported revenue of $637.55 million for Q1 2025, marking a year-over-year increase of 39.2% and exceeding the Zacks Consensus Estimate of $635.14 million by 0.38% [1] - The company achieved an EPS of $4.04, up from $2.81 a year ago, surpassing the consensus EPS estimate of $4.00 by 1.00% [1] Revenue by End Market - Storage and Computing: Revenue of $188.51 million, exceeding the average estimate of $177.56 million by analysts, with a year-over-year increase of 77.6% [4] - Communications: Revenue of $71.67 million, slightly below the average estimate of $73.28 million, reflecting a year-over-year increase of 53.7% [4] - Automotive: Revenue of $144.90 million, below the estimated $148.34 million, showing a year-over-year increase of 66.4% [4] - Enterprise Data: Revenue of $132.92 million, slightly above the average estimate of $131.33 million, but a year-over-year decrease of 11.2% [4] - Industrial: Revenue of $42.60 million, slightly above the estimated $42.17 million, with a year-over-year increase of 40.9% [4] - Consumer: Revenue of $56.95 million, below the average estimate of $58.93 million, reflecting a year-over-year increase of 49.6% [4] Stock Performance - Monolithic's shares have returned +0.4% over the past month, outperforming the Zacks S&P 500 composite, which declined by -0.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1: Earnings Performance - Monolithic Power (MPWR) reported quarterly earnings of $4.04 per share, exceeding the Zacks Consensus Estimate of $4 per share, and up from $2.81 per share a year ago, representing an earnings surprise of 1% [1] - The company posted revenues of $637.55 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.38%, and compared to year-ago revenues of $457.89 million [2] - Over the last four quarters, Monolithic has consistently surpassed consensus EPS and revenue estimates [2] Group 2: Stock Performance and Outlook - Monolithic shares have increased by approximately 0.2% since the beginning of the year, while the S&P 500 has declined by 5.3% [3] - The future performance of the stock will depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $4.04 on revenues of $636.85 million, and for the current fiscal year, it is $16.97 on revenues of $2.64 billion [7] Group 3: Industry Context - The Semiconductor - Analog and Mixed industry, to which Monolithic belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5][6]