MPS(US:MPWR)2025-07-31 22:02Financial Data and Key Metrics Changes - In Q2 2025, Monolithic Power Systems (MPS) achieved record quarterly revenue of $664.6 million, which is 4.2% higher than Q1 2025 and 31% higher than Q2 2024 [4][5] - The company continues to see diversified revenue growth across all markets, indicating a strong performance driven by consistent execution and innovation [5][6] Business Line Data and Key Metrics Changes - Storage and compute revenue grew sequentially, reflecting strong demand for memory and notebook power solutions [5] - The enterprise data segment is expected to grow between 20% to 30% sequentially in Q3 2025, with a seasonal uplift in consumer markets [10][20] Market Data and Key Metrics Changes - The company is experiencing strong demand across all end markets, with particular growth in enterprise data and AI ASIC programs [12][25] - The automotive segment is anticipated to flatten in the middle of the year but is expected to pick up towards the end of Q3 and Q4 as new content opportunities come online [37] Company Strategy and Development Direction - MPS is transforming from a chip-only semiconductor supplier to a full-service silicon-based solutions provider, focusing on innovation and expanding into new markets [5][6] - The company aims to maintain supply chain stability and adapt swiftly to market changes, which is part of its long-term growth strategy [6] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about the outlook for the remainder of the year, citing strong demand across all end markets despite short lead times affecting order patterns [25][26] - The company does not foresee significant changes in customer ordering patterns related to tariffs, believing that the current cycle is driving demand [43][44] Other Important Information - The company is focusing on maintaining a diversified customer base, with expectations to return to a more normal profile of customer contributions by the end of the year [91] - MPS has low inventory levels, which is seen as a positive indicator of operational efficiency [48][81] Q&A Session Summary Question: Can you provide insights on the September setup and growth expectations? - Management indicated enterprise data is expected to grow between 20% to 30% sequentially, with a seasonal uplift in consumer markets [10] Question: What is the outlook for AI ASIC programs? - The company is engaging multiple customers and has numerous design wins, indicating a positive outlook for AI ASIC programs [12] Question: How do you view macroeconomic uncertainties affecting your business? - Management emphasized focusing on internal execution and customer demands, stating that they do not listen to competitors' calls [24][25] Question: What is the growth outlook for the automotive segment? - The automotive segment is expected to flatten in the middle of the year but is anticipated to pick up towards the end of Q3 and Q4 [37] Question: Can you elaborate on the enterprise data segment's growth rates? - Management noted that the lines between traditional CPU and AI are blurring, making it difficult to distinguish growth rates between the two [42] Question: What is the company's capacity and inventory situation? - MPS has the capacity to support $4 billion in revenue, with low inventory levels indicating strong demand [82][81] Question: How is customer concentration evolving with the ASIC ramp? - The company expects to return to a more diversified customer base, with no single customer contributing more than mid to high single digits [91]