Shares of Monolithic Power Systems (MPWR) are surging 5.06% in pre-market trading on Friday, following the company's impressive second-quarter earnings report and a wave of analyst upgrades. The semiconductor company, known for its high-performance analog and mixed-signal integrated circuits, has demonstrated robust growth and resilience in a challenging market environment.
Monolithic Power Systems reported Q2 2025 non-GAAP earnings per share of $4.21, surpassing the analyst estimate of $4.12. The company's GAAP revenue reached $664.6 million, beating expectations and marking a 31.0% increase from the prior year. This strong performance was primarily driven by significant growth in the storage and computing segment, which saw a 69.9% year-over-year increase, and the automotive segment, which grew by approximately 66%.
Following the earnings release, several analysts raised their price targets for MPWR stock. Raymond James increased its target to $875 from $720, maintaining an Outperform rating. Needham raised its target to $820 from $800, while Stifel upped its target to $930 from $880. These upgrades reflect growing confidence in Monolithic Power Systems' business model and future prospects, particularly in areas such as AI and automotive applications. The company's diversified portfolio and strategic focus on developing silicon-based system solutions have positioned it well for continued growth in the semiconductor industry.
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