Monolithic Powers key AI data center segment reports sluggish quarterly sales
The Kirkland, Washington-based company, which counts AI chip heavyweight Nvidia among its customers, reported a close to 17% sales drop, to $132.9 million, in the unit which provides power management tools for AI data centers.
However, Monolithic expects revenue from the segment to ramp-up in the second half of this year, it said in a statement.
The company's shares fell about 3% in after-hours trading, as declining sales in the key segment overshadowed its optimistic forecast for the current quarter.
It forecast second-quarter revenue between $640 million and $660 million. Analysts' on average expect $636.1 million, according to data compiled by LSEG.
Its first-quarter revenue grew nearly 40% to $637.6 million, compared with estimates of $634.3 million, helped by growth in the 'storage and computing' and automotive segments.
In chip industries like automotive and consumer electronics, analysts widely expected the pull-in of customer orders to the first quarter of the year, in a bid to side-step steep tariffs from U.S. President Donald Trump.
"We continue to invest in new technology, expand into new markets, and to diversify our end-market applications and global supply chain. This will allow us to capture future growth opportunities, maintain supply stability, and swiftly adapt to market changes as they occur," the company said.
Quarterly adjusted profit came in at $4.04 per share, beating estimates of $4.01 per share. (Reporting by Priyanka.G and Arsheeya Bajwa in Bengaluru; Editing by Shailesh Kuber)
First Published: 2 May 2025, 03:18 AM IST
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