How NASDAQ-100 Inclusion and Dividend Move At Monolithic Power Systems (MPWR) Has Changed Its Investment Story

• Earlier this month, Monolithic Power Systems announced a fourth-quarter cash dividend of US$1.56 per share, payable on January 15, 2026, to shareholders of record as of December 31, 2025.
• More recently, the company was added to the NASDAQ-100 Index, a move that can increase its visibility and attract additional institutional ownership.
• Next, we’ll explore how Monolithic Power Systems’ inclusion in the NASDAQ-100 could influence its AI-focused investment narrative and growth assumptions.

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Monolithic Power Systems Investment Narrative Recap

To own Monolithic Power Systems, you need to believe its power solutions will stay central to AI-heavy data centers and increasingly electronic vehicles, while margins hold up despite rising costs and competition. The recent NASDAQ-100 inclusion and confirmed dividend do not materially change that near term; the key catalyst remains execution in AI and automotive, and the biggest risk is that revenue expectations tied to those markets prove too optimistic.

Among the latest announcements, the company’s addition to the NASDAQ-100 Index is most relevant here, because it can broaden the shareholder base and sharpen focus on its AI-driven growth story. Higher visibility could amplify both the upside if AI and automotive demand stay strong and the downside if short ordering cycles, inventory corrections, or customer concentration lead to lumpier results than many investors currently expect.

However, investors should also be aware that short ordering cycles and potential inventory corrections could...

Read the full narrative on Monolithic Power Systems (it's free!)

Monolithic Power Systems' narrative projects $3.9 billion revenue and $1.0 billion earnings by 2028.

Uncover how Monolithic Power Systems' forecasts yield a $1181 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Twelve members of the Simply Wall St Community currently estimate fair value for Monolithic Power Systems between US$338 and US$1,181, reflecting very different return expectations. When you set those views against the AI data center and automotive growth assumptions underpinning the current narrative, it becomes clear how important it is to weigh multiple perspectives on what could drive or limit the company’s performance.

Explore 12 other fair value estimates on Monolithic Power Systems - why the stock might be worth less than half the current price!

Build Your Own Monolithic Power Systems Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Monolithic Power Systems research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Monolithic Power Systems research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Monolithic Power Systems' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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