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    The Bull Case For Monolithic Power Systems (MPWR) Could Change Following Citi’s Spotlight On Its AI Data Center Positioning – Learn Why

    Simply Wall St·02/26/2026 04:50:55
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    • In recent days, analysts at Citi have highlighted Monolithic Power Systems as a top pick in the semiconductor space, citing its strong positioning in enterprise data and AI-focused data center markets alongside its improving free cash flow profile.
    • This renewed attention reinforces how MPS’s power management solutions are increasingly central to energy-efficient data infrastructure, supporting its push into high-value, system-level offerings across critical end markets.
    • Next, we’ll examine how Citi’s positive commentary on MPS’s data center and enterprise data strength affects the company’s broader investment narrative.

    Capitalize on the AI infrastructure supercycle with our selection of the 33 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow.

    Monolithic Power Systems Investment Narrative Recap

    To own Monolithic Power Systems, you need to believe its power management chips will remain essential in AI heavy data centers and diversified end markets, while it continues to convert that demand into healthy free cash flow. Citi’s recent endorsement of MPS as a top semiconductor pick underscores that data center and AI exposure is still the key short term catalyst, while the biggest risk is that current expectations already embed a lot of optimism about future demand and margins.

    The most relevant recent announcement here is MPS’s decision to lift its quarterly dividend from US$1.56 to US$2.00 per share, shortly after reporting higher 2025 revenue but lower net income due to prior year one offs. That higher cash return to shareholders, paired with Citi’s focus on improving free cash flow, helps frame the bull case that MPS can support both growth investment and capital returns even as AI and data center cycles ebb and flow.

    Yet against this optimism, investors should be aware of how quickly sentiment could shift if AI data center demand or margin trends start to disappoint...

    Read the full narrative on Monolithic Power Systems (it's free!)

    Monolithic Power Systems' narrative projects $3.9 billion revenue and $1.0 billion earnings by 2028.

    Uncover how Monolithic Power Systems' forecasts yield a $1328 fair value, a 8% upside to its current price.

    Exploring Other Perspectives

    MPWR 1-Year Stock Price Chart
    MPWR 1-Year Stock Price Chart

    Some of the most cautious analysts were assuming MPS would reach about US$3.4 billion in revenue and US$935.9 million in earnings, yet still worry that delayed ramps in silicon carbide and hyperscaler data center products could leave today’s high expectations vulnerable, reminding you that reasonable investors can look at the same AI data center story and reach very different conclusions.

    Explore 10 other fair value estimates on Monolithic Power Systems - why the stock might be worth less than half the current price!

    Form Your Own Verdict

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.