Monolithic Power Systems shifts to AI power-management, targeting $3.71B revenue by 2026 with strong growth and margins.

Monolithic Power Systems is transitioning from a high-end analog chip supplier to a leader in rack-level power management for AI-accelerator applications. The company expects its 2026 revenue to reach $3.71 billion, driven by significant growth in Enterprise Data (85%) and Communications (40%), with operating margins near 37%. Despite risks like inventory buildup and geopolitical exposure, the company’s strong backlog and adoption of new technologies support a bullish outlook and a $1,650 fair value estimate.