Monolithic Power's Enterprise Data Revenue Set to Reaccelerate in 2H25: Analysts

Monolithic Power System's Q2 results showed 70% YoY growth in its Storage and Computing segment. Analysts predict that the second half of 2025 and into 2026 will be driven by its Enterprise Data segment, which they expect to reaccelerate. This is based on the company's strong performance in the data center market.

Monolithic Power Systems (MPS), a leading provider of high-performance semiconductor-based power electronics solutions, has reported robust financial results for the second quarter of 2025. The company's revenue reached $664.6 million, a significant 31.0% year-over-year (YoY) increase and 4.2% sequential growth. This performance was driven by strong growth across multiple segments, particularly in the Storage and Computing sector, which grew by 69.9% YoY to $195.3 million [1].

The company's non-GAAP net income for the quarter was $202.2 million, up 32.8% from $156.7 million in Q2 2024. The non-GAAP earnings per share (EPS) reached $4.21, up 32.8% from $3.17 in the same period last year. Despite minimal gross margin compression, the non-GAAP gross margin stood at 55.5% compared to 55.7% in the prior year. Operating income increased 35.2% YoY to $231.2 million, while operating expenses grew by 23.2%, significantly outpaced by revenue growth, indicating disciplined cost management during expansion [1].

Analysts predict that the second half of 2025 and into 2026 will be driven by the Enterprise Data segment, which they expect to reaccelerate. This optimism is based on the company's strong performance in the data center market. The company's CEO, Michael Hsing, commented, "Our proven, long-term growth strategy remains intact as we continue our transformation from being a chip-only, semiconductor supplier to a full service, silicon-based solutions provider" [1].

For the third quarter of 2025, MPS projects revenue between $710.0-$730.0 million, with a GAAP gross margin of 54.9-55.5%. This outlook implies approximately 6-10% sequential growth, reflecting the company's continued momentum and strategic pivot [1].

References:
[1] https://www.stocktitan.net/news/MPWR/monolithic-power-systems-announces-results-for-the-second-quarter-k60koturra5j.html