Should I Buy MPWR? MPWR 2026 Analysis

Should You Buy Monolithic Power Systems Inc (MPWR) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

1183.150

1 Day change

1.84%

52 Week Range

1185.050

Analysis Updated At

2026/01/26

Monolithic Power Systems Inc (MPWR) is a good buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. The company's strong financial performance, positive analyst sentiment, hedge fund buying activity, and growth prospects in AI infrastructure make it a compelling investment opportunity.

Technical Analysis

The technical indicators are generally bullish. The MACD is positive and contracting, RSI is neutral, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The current price is near the R1 resistance level of 1079.678, indicating potential upside. Key support is at 1020.495.

Options Data

Bearish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

The options data shows a higher open interest in puts compared to calls, but the option volume put-call ratio suggests more call activity, indicating bullish sentiment.

Technical Summary

Sell

Buy

Positive Catalysts

Hedge funds are significantly increasing their buying activity, up 145.95% last quarter.
Analysts have consistently raised price targets, with the latest targets ranging from $950 to $1,375, and maintain strong Buy ratings.
The company is well-positioned to benefit from AI infrastructure growth and has shown strong Q3 financial results.
Strong revenue and net income growth YoY (18.88% and 23.43%, respectively).

Neutral/Negative Catalysts

Gross margin dropped slightly by -0.49% YoY, which could indicate cost pressures.
No recent news or congress trading data to provide additional sentiment or validation.

Financial Performance

In Q3 2025, Monolithic Power reported revenue growth of 18.88% YoY to $737.18M, net income growth of 23.43% YoY to $178.27M, and EPS growth of 25.76% YoY to $3.71. However, gross margin declined slightly to 55.11%, down -0.49% YoY.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts are highly bullish on MPWR, with multiple firms raising their price targets recently. Truist raised its target to $1,375, citing AI infrastructure growth as a key driver. Other firms like Citi, KeyBanc, and TD Cowen have also raised targets to $1,250-$1,300, maintaining Buy or Overweight ratings. Rosenblatt, while neutral, acknowledges the company's strong recovery potential in industrial/automotive markets.

11 Analyst Rating

Wall Street analysts forecast MPWR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MPWR is 1200 USD with a low forecast of 950 USD and a high forecast of 1375 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

9 Buy

2 Hold

0 Sell

Strong Buy

Current: 1161.780

Low

950

Averages

1200

High

1375

Current: 1161.780

Low

950

Averages

1200

High

1375

Oppenheimer

Outperform

maintain

AI Analysis

2026-01-29

New

Reason

Oppenheimer

Price Target

AI Analysis

2026-01-29

New

maintain

Outperform

Reason

Oppenheimer raised the firm's price target on Monolithic Power to $1,300 from $1,200 and keeps an Outperform rating on the shares ahead of quarterly results. The firm sees upside to Q4 print and Q1 outlook led by the AI and auto.

Wells Fargo

Joe Quatrochi

Overweight

maintain

2026-01-26

New

Reason

Wells Fargo

Joe Quatrochi

Price Target

2026-01-26

New

maintain

Overweight

Reason

Wells Fargo analyst Joe Quatrochi raised the firm's price target on Monolithic Power to $1,200 from $1,125 and keeps an Overweight rating on the shares. Discussing the sector, the firm says sentiment remains improved coming out of CES as demand commentary suggests a modest improvement in visibility. That said, the group's recent SOX outperformance creates a more difficult EPS setup and requires clean beat / raise quarters. Feedback post Monolithic upgrade has been positive as investors agree with Wells' call of upward estimate revisions can drive shares higher, it adds.

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MPWR Should I Buy

MPWR Should I Buy

Should You Buy Monolithic Power Systems Inc (MPWR) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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