At CES 2026, Nvidia officially presented its Rubin platform, building on the momentum of Blackwell. The company anticipates combined sales for both platforms to approach $500 billion in 2026. Rubin integrates Vera CPUs, Rubin GPUs, and Nvidia's networking, reducing AI inference costs compared to Blackwell.
As GPU performance advances, power delivery becomes more critical. Monolithic Power Systems supplies power control modules for AI servers. Wells Fargo recently increased its price target for MPWR stock to $1,125 from $1,100, suggesting the company may benefit as Nvidia's platforms expand.
Monolithic Power Systems, founded in 1997 and based in Washington, specializes in high-efficiency power management integrated circuits. Public since 2004, the company has expanded into power converters, controllers, motor drivers, and battery management systems. Its products are used in data centers, automotive platforms, industrial systems, and consumer devices. The company has a market capitalization of $49.5 billion.
Over the past two decades, MPWR stock has returned more than 5,800%. After joining the S&P 500 in 2021, the stock rose roughly 160%. Last month, it entered the Nasdaq-100. Shares gained 73% over the past 52 weeks, reaching an all-time high of $1,123.38 in October.
The 14-day RSI rebounded to around 62 from near oversold levels in November. The MACD line is now above the signal line, with the histogram in positive territory. MPWR stock trades at about 62 times forward adjusted earnings and 18 times sales. The company has paid dividends for over a decade, recently distributing $1.56 per share, with a 0.62% yield and a 46.38% payout ratio.
On Oct. 30, Monolithic Power reported third-quarter revenue of $737.2 million, up 19% year-over-year. Storage and computing revenue increased nearly 30% annually to $186.6 million. Automotive revenue rose 36%, industrial revenue climbed 26%, communications grew 11%, consumer revenue advanced 12%, and enterprise data edged higher.
Non-GAAP net income was $227.1 million, or $4.73 per share. Operating cash flow reached $239.3 million. Cash, equivalents, and short-term investments totaled $1.26 billion at quarter-end. Management described the quarter as showing the company's evolution into a silicon-based solutions provider.
Monolithic Power expects fourth-quarter revenue between $730 million and $750 million, with non-GAAP gross margins of 55.2% to 55.8%. Results will be reported after the market closes on Feb. 5. Analysts forecast adjusted EPS of $3.63 for Q4, up almost 15% year-over-year. Fiscal 2025 adjusted EPS is anticipated at $13.50, rising 19% to $16.07 in fiscal 2026.
Wells Fargo upgraded MPWR stock to "Overweight" with a $1,125 price target. Analyst Aaron Rakers views 2025 as a reset year as Nvidia broadens its supplier ecosystem. The firm models 39% year-over-year revenue growth in 2026 for Monolithic Power, with potential upside as visibility improves.
Among 16 analysts, 12 rate MPWR a "Strong Buy," two call it a "Moderate Buy," and two recommend "Hold." The mean price target is $1,219.23, implying 18% upside. The highest projection is $1,375, suggesting 33% potential gain.