Core Viewpoint - Monolithic Power Systems, Inc. (MPS) is set to report its financial results for the third quarter ended September 30, 2025, on October 30, 2025, after market close [1][2]. Financial Reporting - MPS will provide written commentary on its operational results alongside the earnings announcement [2]. - A question-and-answer conference call will be held at 2:00 p.m. PT / 5:00 p.m. ET, accessible via a Zoom webcast [3]. Company Overview - MPS is a fabless global company specializing in high-performance, semiconductor-based power electronics solutions, founded in 1997 by CEO Michael Hsing [4]. - The company's mission focuses on reducing energy and material consumption to enhance quality of life and promote sustainability [4]. - MPS leverages deep system-level knowledge, strong semiconductor design expertise, and innovative proprietary technologies to deliver energy-efficient and cost-effective solutions [4].

Core Insights - Monolithic Power Systems, Inc. (MPWR) is recognized as a high-growth semiconductor stock with profitability projected for 2025, supported by its strong position in the AI chip power management market [1][2]. Revenue Growth - The company has achieved a remarkable 34.3% revenue growth over the past 12 months, primarily driven by significant market share gains in Nvidia's Blackwell Ultra B300 HGX AI chips [2]. - Monolithic Power has captured a 50% market share of the B300 HGX platform, largely due to supply constraints that have hindered competitors [2]. Financial Projections - KeyBanc Capital Markets anticipates that Monolithic Power will secure substantial business from Nvidia's Rubin R200 HGX platform, leveraging its advantages from the B300 HGX platform [3]. - The revised financial outlook indicates that the Enterprise segment is expected to decline by only 4% in 2025, an improvement from the previously forecasted 10% decline by management [3]. Company Overview - Monolithic Power Systems specializes in designing and developing high-performance integrated power solutions, including DC-to-DC converters, power modules, motor drivers, and power management chips [4].

Group 1 - ClearBridge Investments reported modest gains in its "ClearBridge Mid Cap Growth Strategy" for Q3 2025, outperforming the Russell Midcap Growth Index which returned 2.8% [1] - The strategy's performance was attributed to shifts in monetary policy, stabilizing earnings, and improving investor sentiment, positioning it well for future growth despite near-term volatility [1] - The fund's top five holdings were highlighted, indicating strong investment choices for 2025 [1] Group 2 - Monolithic Power Systems, Inc. (NASDAQ:MPWR) was noted for a one-month return of 16.72% and a 52-week gain of 5.47%, closing at $980.90 per share with a market capitalization of $46.977 billion on October 8, 2025 [2] - The company reported record revenue of $664.6 million in Q2 2025, which was 4.2% higher than Q1 2025 and 31.0% higher than Q2 2024, reflecting strong performance in the semiconductor sector [3] - Monolithic Power Systems, Inc. benefited from improved confidence in its role within the AI supply chain, alleviating previous concerns about market share erosion [3]

Investor Overview Q2 2025 Safe Harbor Statement Statements made in this presentation contain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to ...

Market Overview - Mid cap growth equities experienced modest gains in Q3, with the Russell Midcap Growth Index returning 2.8%, lagging behind the Russell Midcap Value Index at 6.2% and the Russell Midcap Index at 5.3% [3] - The U.S. Federal Reserve's rate cut in September contributed to easing monetary policy, benefiting rate-sensitive sectors and renewing interest in cyclical and innovation-led areas [3] Investor Sentiment - Investor sentiment improved due to the passage of the One Big Beautiful Bill and progress on trade agreements, reducing policy uncertainty and enabling companies to execute delayed strategic decisions [4] - Earnings estimates stabilized, particularly in technology and AI-related sectors, despite ongoing challenges in non-residential construction and discretionary segments [4] Portfolio Performance - The ClearBridge Mid Cap Growth Strategy outperformed its benchmark in Q3, driven by stock selection in IT, consumer staples, and healthcare sectors, while consumer discretionary and financials sectors slightly detracted from performance [5] Sector Contributions - In the IT sector, AppLovin (APP) and Monolithic Power Systems (MPWR) were standout performers, with AppLovin benefiting from strong earnings and optimism around its e-commerce business [6] - Consumer staples saw positive contributions from Performance Food Group (PFGC) and Casey's General Stores (CASY), both benefiting from strong operational performance [7] - The consumer discretionary sector faced challenges, particularly with Chipotle Mexican Grill (CMG) and Wingstop (WING) experiencing declines due to competitive pressures and softer spending trends [8] - Financials sector was a modest drag on performance, with Tradeweb Markets (TW) and Corpay facing challenges from macro volatility and company-specific issues [9] Portfolio Positioning - New positions were initiated in Roblox, benefiting from improved growth dynamics and advertising opportunities, and APi Group, which is well-positioned in safety and industrial services [10][11] - Exited position in Deckers Outdoor (DECK) due to increasing competitive pressures in the sneaker market [12] Outlook - Leadership within mid growth stocks remains selective, with a few companies rewarded for differentiated technology and strong pipelines, while others struggle with demand and competition [13] - Focus remains on identifying businesses with secular growth drivers across technology, healthcare, and industrials sectors [14] - Near-term market uncertainty is expected to persist, but the strategy is positioned to benefit from companies sustaining durable growth in earnings and cash flow [15] Portfolio Highlights - The ClearBridge Mid Cap Growth Strategy had positive contributions across seven of the 11 sectors, with IT and healthcare being the leading contributors [16] - Stock selection in IT, consumer staples, healthcare, and energy sectors contributed positively, while consumer discretionary and financials sectors weighed on performance [17] - Individual stock contributions included AppLovin, United Rentals (URI), and Performance Food, while detractors included Chipotle Mexican Grill and Tradeweb Markets [18]

Core Viewpoint - The comparison between ON Semiconductor Corp. and Monolithic Power highlights ON as a more attractive option for value investors based on various financial metrics and rankings [1][3][6] Group 1: Zacks Rank and Earnings Outlook - ON Semiconductor Corp. has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to Monolithic Power, which has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank strategy focuses on companies with positive earnings estimate revisions, which is a key factor for value investors [2][3] Group 2: Valuation Metrics - ON has a forward P/E ratio of 21.69, significantly lower than Monolithic Power's forward P/E of 55.29, suggesting ON is more undervalued [5] - The PEG ratio for ON is 2.51, while Monolithic Power's PEG ratio is 2.74, indicating ON's expected earnings growth is more favorable [5] - ON's P/B ratio stands at 2.59, compared to Monolithic Power's P/B of 13.63, further supporting ON's valuation attractiveness [6] Group 3: Value Grades - ON Semiconductor Corp. has earned a Value grade of B, while Monolithic Power has received a Value grade of F, reinforcing the perception that ON is the better investment choice for value investors [6]

Core Viewpoint - Reed Semiconductor has filed a patent infringement lawsuit against Monolithic Power Systems, indicating potential legal challenges in the semiconductor industry [1] Company Summary - Reed Semiconductor is taking legal action against Monolithic Power Systems, which may impact both companies' operations and market positions [1] Industry Summary - The lawsuit highlights ongoing intellectual property disputes within the semiconductor sector, which could influence competitive dynamics and innovation strategies [1]

Core Viewpoint - Johnson Fistel, PLLP is investigating potential claims against Monolithic Power Systems, Inc. for breaches of fiduciary duties and violations of federal securities laws related to performance and quality control issues affecting its products [1][2]. Group 1: Investigation Details - A securities fraud class action complaint alleges that Monolithic Power Systems made false or misleading statements regarding its voltage regulator modules and power management integrated circuits, which suffered from significant performance and quality control issues [2]. - The defects in Monolithic's products negatively impacted the performance of certain products offered by Nvidia, its most important customer, leading to irreparable damage in their relationship [2]. - Monolithic failed to adequately address known issues affecting the performance of its power management solutions supplied to Nvidia, exposing the company to material undisclosed risks of significant business, financial, and reputational harm [2]. Group 2: Shareholder Rights - Current long-term stockholders who held Monolithic Power Systems shares before February 8, 2024, are encouraged to contact Johnson Fistel to discuss their legal rights regarding the ongoing investigation [3].

Core Insights - Monolithic Power Systems, Inc. (MPWR) is recognized as a strong dividend stock and has entered a strategic partnership with ECARX Holdings Inc. to develop automotive intelligence and robotics solutions [1][2] - The collaboration aims to enhance product testing, system upgrades, and accelerate time-to-market for new products, leveraging MPWR's global research and supply capabilities [2][3] Company Overview - ECARX is expanding its intelligent car and robotics technology into sectors such as automation and consumer electronics through its partnership with MPWR [3] - MPWR specializes in semiconductor-based power electronics, with applications in telecom, cloud services, automotive systems, and consumer products [3] Strategic Importance - Ziyu Shen, Chairman and CEO of ECARX, emphasized that the partnership with MPWR is a significant step in building a global strategy and technological ecosystem, highlighting the supply chain as a core competitive advantage [3]

Core Thesis - Monolithic Power Systems, Inc. (MPWR) is positioned for significant upside due to its strong presence in enterprise AI and semiconductor markets, with a projected growth of 40-50% year-over-year in the Enterprise Data segment [2][4] Financial Performance - As of September 10th, MPWR's share was trading at $855.18, with trailing and forward P/E ratios of 22.38 and 39.06 respectively [1] - The stock has appreciated approximately 52.2% since previous coverage in April 2025, indicating strong market performance [6] Market Position - MPWR has a history of disciplined execution and is gradually gaining market share from competitors like Texas Instruments across various sectors, including robotics, EVs, and AI chips [3] - The company's ASIC business is expected to benefit from ongoing AI capital expenditure, potentially outpacing competitors like NVIDIA in certain segments [2][4] Growth Potential - The Enterprise Data segment is anticipated to become a significant driver of revenue, potentially accounting for over half of MPWR's business in the coming years [2] - Current valuations are seen as overly penalized, with a strong short-term outlook driven by enterprise AI demand expected to lead to revenue beats in the next few quarters [3][4] Investment Case - MPWR presents a compelling investment opportunity with resilient long-term growth, structural market share gains, and increasing contributions from high-margin enterprise AI products [4] - The stock is considered underappreciated at current levels, with a potential upside of approximately 25% to a fair value estimate of $922 per share [4]