Will Nasdaq 100 Entry And Higher Dividend Shape Monolithic Power Systems' (MPWR) AI Data Center Narrative?

• In the past week, Monolithic Power Systems, Inc. declared 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.
• The dividend announcement comes alongside the company’s upcoming inclusion in the Nasdaq 100 Index, underlining its growing scale and profile in global power semiconductor markets.
• We’ll now explore how the Nasdaq 100 inclusion may influence Monolithic Power Systems’ existing investment narrative around AI and data center growth.

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Monolithic Power Systems Investment Narrative Recap

To own Monolithic Power Systems, you need to believe its power management chips will stay central to AI data centers and higher content in autos, while margins hold up despite rising costs and competition. The Nasdaq 100 inclusion and Q4 dividend confirmation help raise the company’s profile and underline balance sheet strength, but they do not materially change the key near term catalyst in AI and data center demand, or the main risk around possible future earnings pressure.

The most relevant update here is the company’s continued quarterly dividend of US$1.56 per share, now stretching to 12 consecutive years of payments with growth over time. For investors focused on AI and auto catalysts, this capital return track record can signal confidence in cash generation, even as forecasts point to a period of earnings decline that could test how much of the AI and automotive growth story is already priced in.

Yet against this appealing AI and automotive narrative, investors should also be aware of the risk that earnings are forecast to decline over the next few years and ...

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 fair value estimates from the Simply Wall St Community span a wide range, from about US$340.71 to US$1,180.93 per share, underscoring how far apart individual views can be. Against this spread, the reliance on AI driven data center demand as a key catalyst highlights why you may want to explore several different viewpoints before forming your own expectations for MPWR.

Explore 12 other fair value estimates on Monolithic Power Systems - why the stock might be worth as much as 25% more than 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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