Monolithic Power Systems posts record Q1 with 26% revenue growth, driven by AI demand in data centers.

Monolithic Power Systems (MPWR) reported record first-quarter results with a 26% year-over-year revenue increase, fueled by strong growth in its Enterprise Data segment, largely driven by AI demand. The company's advanced power-density technology positions it as a leader in high-power AI and data center markets. Management raised its full-year growth forecast for Enterprise Data to 85% year-over-year, supported by a robust backlog and no supply issues. Despite the strong performance, the stock's valuation appears stretched after a 70% rally this year, leading to a Hold rating with a fair value estimate near $1,570.