Monolithic Power Systems (MPWR) is positioned to exceed Q3 expectations and deliver a stronger-than-anticipated Q4 outlook, driven by demand in its AI-related enterprise data and communications businesses, Oppenheimer said Thursday in a report.
The enterprise-data segment is expected to increase 33% in Q3 from Q2, driven by AI data-center graphics processing units and custom-chip power-delivery applications, the report said.
The communications segment is expected to advance 20%, led by networking components such as optical transceivers, data processing units, network interface cards and switches, the report said.
Oppenheimer projects EPS of $27.78 in 2026, $36.75 in 2027, and $42.54 in 2028. It estimates free cash flow of $964 million in 2026 and $1.7 billion in 2027.
Q3 results are due Thursday.
Oppenheimer lowered its price target on Monolithic stock to $1,500 from $1,700 and reiterated its outperform rating.
Price: 1157.26, Change: -10.67, Percent Change: -0.91
