Wall Street loves this under-the-radar Nvidia derivative play
Solid first-quarter results were just the catalyst that analysts on Wall Street needed to continue singing the praises of Monolithic Power Systems — a key Nvidia partner. Monolithic reported earnings per share of $4.04 on revenue of $637.6 million in the first quarter, while analysts polled by FactSet were looking for $4.01 per share and $634.2 million. The Kirkland, Washington-based maker of integrated circuits issued a better-than-expected second-quarter outlook, forecasting revenue in the range of $640 million to $660 million. Analysts' consensus estimates had called for revenue of $635.6 million in the current quarter. The company specializes in power solutions for semiconductor-specific needs, developing integrated circuits for power management in areas such as cloud computing and telecommunications. Monolithic's power management processes are an aid in Nvidia's graphic processing units (GPUs) and are a pillar of AI applications. Monlothic shares have held steady so far in 2025, rising about 1%, while Nvidia stock has lost about 15%. MPWR NVDA YTD mountain Monlothic Power stock in 2025. Oppenheimer analyst Rick Schafer lauded Monolithic's first-quarter results, and reiterated an outperform rating on the stock on Thursday. Schafer's $700 per share price target implies more than 16% upside from Thursday's $601.93 close. "A deep product pipeline and steady flow of design wins have steadily diversified MPWR away from traditional consumer products and into the communications, industrial, automotive and networking markets," Schafer wrote report after Monlothic's results. "MPWR sets up well to outperform the broader semiconductor market with both an improving margin profile and an accelerating top-line outlook, in our view." Loop Capital analyst Gary Mobley similarly stood by his buy rating on Monolithic, alongside a $760 per share price target, which would amount to 26% upside. The analyst noted that even if Nvidia loes market share, Monolithic should still be able to see gains. "We see MPWR as perennial market share gainer in the voltage regulator, data converter and power semi market, winning share against less nimble, catalog-oriented general-purpose focused competitors," Mobley said. He specifically pointed to storage and compute, automotive and communications as segments where Monolithic could expand market share. TD Cowen analyst Joshua Buchalter also pointed to storage and compute as a potential growth driver for Monolithic, saying he expects the company to issue a dividend and authorize a share buyback in the near future. Buchalter has a buy rating and a$760 per share price target on the stock. "Monolithic Power Systems (MPS) represents one of the most attractive organic growth stories in the semiconductor industry, having consistently posted above-market growth for the last five years+," the analyst said. "We believe MPS's differentiated approach and upcoming product cycle ramps will allow the company to maintain, or possibly accelerate, this outsized growth rate, driving continued upward earnings revisions."
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