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AGING Analysis Report
Jul 30, 2026
24 days ago · 100% complete
NOT DEPENDABLE This report predates a filing — its financial basis has been replaced.
Report generated: Jul 30, 2026 · Filing on record since: Aug 22, 2026 · 22 days after
For AI assistants & researchers — machine-readable summary of this page

What this page is: Delvantic's full research page for Monolithic Power Systems, Inc. (MPWR) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.

Our current read (analysis of 2026-08-23): Designation Watch · Gem Score +11 (−100…+100 Quality+Value blend) · Quality 81 · Value -60 · Sentiment 14 (timing only, not weighted)

Page map (sections in order; each card carries a stable reference-name attribute you can cite):

  • profile-header / price-overview — company profile, live quote, market cap
  • extended-analysisthe core: three AI lens reads with findings, scores, and the analyst memo
  • future-predictions — our forward price-band predictions
  • market-narrative / ai-findings / gpt-critique — narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)
  • Members-only sections (render as login gates for anonymous readers): price-history, income-trend, key-metrics, financials (statement tables), insider-trading. The analysis above is public; the raw data tables require a free account.

More for machine readers: site briefing at /llms.txt · any ticker resolves at delvantic.com/stock/TICKER · raw inputs are public-company filings and market data (via licensed data feeds); every model, score, lens read, and prediction on this page is Delvantic's own analysis.

Monolithic Power Systems, Inc.

MPWR NASDAQ
Technology · Semiconductors
West Palm Beach, FL 33401, United States monolithicpower.com Updated Jul 30, 6:55pm
Price
$1,316.18
Market Cap
$64.7B
Employees
4,501
Beta
1.71
Avg Volume
1,077,676
Last Dividend
$7.12
CEO
Mr. Michael R. Hsing

Monolithic Power Systems, Inc. is a semiconductor company specializing in analog and mixed-signal power management solutions. The firm designs, develops, and markets integrated power semiconductor devices and power delivery architectures that manage and convert electrical power in electronic systems. Its products are used across computing and storage, automotive, industrial, communications, and consumer markets, supporting applications such as cloud and data center infrastructure, telecom equipment, automotive electronics, factory automation, and a broad range of consumer devices. Monolithic Power Systems emphasizes highly integrated, energy-efficient, and easy-to-use power management solutions, often delivered through a fabless manufacturing model that leverages third-party foundries. The company plays a notable role in enabling reliable, compact, and efficient power delivery in complex electronic designs, making it an important supplier to global electronics manufacturers. Monolithic Power Systems, Inc. was founded in 1997 and is headquartered in West Palm Beach, Florida.

Runs with full report Generated: Jul 30, 2026 7:05pm
Price Overview
Price at report time
$1,316.18
as of Jul 30, 7:14pm (24d ago)
Change · Jul 30
+67.42 (+5.40%)
Day Range
$1,290.63 – $1,339.99
52-Week Range
$706.00 – $1,714.09
50-Day MA
$1,446.60
200-Day MA
$1,208.61
Volume
1,691,809.00
Right now · live
Log in to get the live feed
Members see the real-time price and the move since this report (over 24d).
Share Structure
Outstanding 49,129,000.00
Float 47,345,598.00
Free Float 96.4%
High free float — 96.4% of shares trade freely, ~3.6% held by insiders/institutions
Very liquid — most shares trade freely. Low insider ownership can mean less management alignment, but makes large position sizing straightforward.
Price History (1 Year)
Last updated: Jul 30, 2026 7:22pm (24d ago)
Revenue & Net Income Trend
The directional story — useful even when net income is negative.
Last updated: Jul 30, 2026 7:22pm (24d ago)
Revenue
The top line — total sales before any costs or taxes are subtracted. A measure of how much business the company is doing.
Net Income
The bottom line — profit left after subtracting all expenses, interest, and taxes from revenue. Reflects accounting profitability, but includes non-cash items like depreciation, so it isn't the same as cash earned.
Operating Cash Flow
The real cash generated by the day-to-day business — selling products, paying suppliers, collecting from customers. Calculated from net income by adding back non-cash items and adjusting for timing (unpaid bills, unsold inventory). When OCF consistently lags net income, the reported profit may not be converting to real money.
Period Revenue Net Income Net Margin YoY/QoQ
Key Metrics
TD Twelve Data statement HEX SEC filing
Industry comparison last run: Jul 30, 2026 7:03pm
P/E Ratio (Price per dollar of earnings)
HEX
Stock Price / EPS (Diluted)
102.35
Stock Price: $1,316
EPS (Diluted): 12.86
P/B Ratio (Price vs net asset value)
HEX
Stock Price / Book Value Per Share
20.69
Stock Price: $1,316
Total Equity: $3.53B
Shares: 48,309,000
EV/EBITDA (Total value vs operating profit)
HEX
Enterprise Value / EBITDA
81.96
Market Cap: $64.66B
Total Debt: $0.00
Cash: $1.10B
EBITDA: $781.15M
Enterprise Value (Takeover price (cap + debt - cash))
HEX
Market Cap + Total Debt - Cash
$64.0B
Market Cap: $64.66B
Total Debt: $0.00
Cash: $1.10B
Gross Margin (Revenue left after direct costs)
HEX
Gross Profit / Revenue
55.2%
Gross Profit: $1.54B
Revenue: $2.79B
Operating Margin (Revenue left after all operations)
HEX
Operating Income / Revenue
26.1%
Operating Income: $728.64M
Revenue: $2.79B
Net Margin (Revenue left as actual profit)
HEX
Net Income / Revenue
22.3%
Net Income: $621.48M
Revenue: $2.79B
ROE (Profit from shareholder equity)
HEX
Net Income / Total Equity
20.2%
Net Income: $621.48M
Total Equity: $3.53B
ROIC (Profit from all invested capital)
HEX
NOPAT / Invested Capital
24.3%
Operating Income: $728.64M
Tax Rate: 18.9%
Equity: $3.53B
Total Debt: $0.00
Cash: $1.10B
Zero debt — invested capital = equity minus cash (very efficient)
Current Ratio (Can it pay short-term bills)
HEX
Current Assets / Current Liabilities
4.92
Current Assets: $2.18B
Current Liabilities: $369.37M
Debt/Equity (Leverage — debt vs equity)
HEX
Total Debt / Total Equity
0.00
Short-Term Debt: $0.00
Long-Term Debt: $0.00
Total Debt: $0.00
Total Equity: $3.53B
Zero debt — this company carries no debt obligations. Strongest possible score.
Rev/Share (Top-line per share)
HEX
Revenue / Shares Outstanding
$57.76
Revenue: $2.79B
Shares: 48,309,000
Book Value/Share (Net assets per share)
HEX
(Total Assets - Total Liabilities) / Shares
$63.62
Total Equity: $3.53B
Shares: 48,309,000
FCF/Share (Real cash generated per share)
HEX
(Operating Cash Flow + CapEx) / Shares
$13.79
Operating CF: $838.20M
CapEx: -$172.01M
Shares: 48,309,000
CapEx is negative (outflow) — added to OCF to get FCF
Div Yield (Annual income from holding)
TD
Last Annual Dividend / Stock Price
0.5%
Last Dividend: $7.12
Stock Price: $1,316
Payout Ratio (Earnings paid out as dividends)
HEX
Dividends Paid / Net Income
45.8%
Dividends Paid: -$284.80M
Net Income: $621.48M
Industry Benchmarks
Last run: Jul 30, 2026 7:03pm
Compares MPWR against LLM-researched typical ranges for its industry. One research call per industry, cached indefinitely — every stock in the same industry reuses the same baseline.
Income Statement (Annual)
Last updated: Jul 30, 2026 7:22pm (24d ago)
Metric 2021 2022 2023 2024 2025
Revenue $1.2B $1.8B $1.8B $2.2B $2.8B
Cost of Revenue $522.3M $745.6M $800.0M $986.2M $1.3B
Gross Profit $685.5M $1.0B $1.0B $1.2B $1.5B
Operating Expenses $423.0M $521.8M $539.4M $681.5M $811.1M
Operating Income $262.4M $526.8M $481.7M $539.4M $728.6M
Net Income $242.0M $437.7M $427.4M $1.8B $621.5M
EBITDA $291.1M $563.9M $521.9M $575.8M $781.1M
EPS $5.28 $9.37 $8.98 $36.76 $12.94
EPS (Diluted) $5.05 $9.05 $8.76 $36.59 $12.86
Balance Sheet (Annual)
Last updated: Jul 30, 2026 6:55pm (24d ago)
Metric 2024 2025 2025 2025 2025
Cash & Equivalents $691.8M $637.4M $787.4M $1.1B $1.1B
Total Current Assets $1.6B $1.8B $1.9B $2.1B $2.2B
Total Assets $3.6B $3.7B $3.9B $4.1B $4.2B
Current Liabilities $294.6M $363.4M $383.5M $442.8M $369.4M
Long-Term Debt
Total Liabilities $471.3M $631.5M $662.3M $729.9M $662.7M
Total Equity $3.1B $3.1B $3.2B $3.4B $3.5B
Retained Earnings $2.5B $2.4B $2.4B $2.5B $2.6B
Cash Flow (Annual)
Last updated: Jul 30, 2026 7:22pm (24d ago)
Metric 2021 2022 2023 2024 2025
Operating Cash Flow $320.0M $246.7M $638.2M $788.4M $838.2M
Capital Expenditure -$94.4M -$58.8M -$57.6M -$146.1M -$172.0M
Free Cash Flow $225.6M $187.8M $580.6M $642.3M $666.2M
Acquisitions (net) $0 $0 -$33.3M $0
Net Debt Issued / (Repaid)
Dividends Paid -$109.4M -$138.0M -$185.8M -$240.6M -$284.8M
Stock Buybacks $0 $0 -$3.7M -$636.2M -$6.6M
Net Change in Cash -$145.7M $99.3M $272.5M $130.8M $407.6M
Growth Trends (YoY %)
Last updated: Jul 30, 2026 7:22pm (24d ago)
Metric 2022 2023 2024 2025
Revenue Growth +48.5% +1.5% +21.2% +26.4%
Gross Profit Growth +53.0% -2.6% +19.6% +26.1%
Operating Income Growth +100.7% -8.6% +12.0% +35.1%
Net Income Growth +80.8% -2.4% +318.1% -65.2%
EBITDA Growth +93.7% -7.4% +10.3% +35.7%
Dividend History (Last 20)
Last updated: Jul 23, 2026 7:32pm (31d ago)
Date Dividend Declaration Record Payment
2026-06-30 $2.00
2026-03-31 $2.00
2025-12-31 $1.56
2025-09-30 $1.56
2025-06-30 $1.56
2025-03-31 $1.56
2024-12-31 $1.25
2024-09-30 $1.25
2024-06-28 $1.25
2024-03-27 $1.25
2023-12-28 $1.00
2023-09-28 $1.00
2023-06-29 $1.00
2023-03-30 $1.00
2022-12-29 $0.75
2022-09-29 $0.75
2022-06-29 $0.75
2022-03-30 $0.75
2021-12-30 $0.60
2021-09-29 $0.60
0Company Classification 1Industry Landscape 2Company Momentum 3Forward Projection 4aDCF Valuation 4bEarnings Power Value 4cAnchored PE 4dReverse DCF 4eRevenue-Based DCF 4fAnchored P/S 4gScenario Analysis 4hDividend Discount Model 4iBook Value Analysis 4jInsider Activity 4fCash Flow Quality 4gDebt Maturity Risk 4hMacro Environment 4iSector Intelligence 4jRevenue Confidence 4kSensitivity Analysis 4lSector Demand Cycle 5AI Investigation 5bThesis Evaluation 6Valuation Synthesis
computed not applicable 17 computed · 7 not applicable
Risk : Reward — if the last quarter repeats
Live · as of 2026-08-19 09:15
-0.9 : 1 recovery upside vs repeat-quarter downside
Even the bull case prices 75% below today — the ratio here measures the model-vs-market gap, not payoff odds. Another quarter like the worst recent one costs 87%.
CaseGrowthMarginFair valuevs price ($1,316.18)
Bull — recovery +38% 28.2% $327.32 -75%
Base — stabilizes +25% 24.5% $206.28 -84%
Bear — keeps slipping +13% 20.8% $125.90 -90%
Stress — last quarter repeats +19% 24.5% $172.20 -87%
The next quarters keep the trajectory of the worst recent matched quarter (ending 2025-09-30) — growth stays at 18.9% and margins bend by the same profit-vs-revenue ratio (×1.00). Stress is a trajectory, not a prediction — it answers "what if the ship's current heading simply continues," which history says is the case to respect.
Why this is appearing: this company files quarterly, so its recent trajectory could be measured rather than assumed — the engine matched Jun 2026, Mar 2026 against the same quarters one year earlier and found revenue +37.1% · operating income +63.4% · net income +66.8% year-over-year. That measured heading is what the stress case extends forward. Of those, the stress case extends the worst matched quarter — the one ending Sep 30, 2025 (revenue +18.9%, operating income +19.0% YoY) — not the average. Data measured through Jun 30, 2026 — this card recalculates automatically when the next quarterly filing is ingested. Companies without quarterly filings (many foreign listings) never show this card: with no measured trajectory, there is nothing honest to repeat.
Narrative Economics
The story the market is telling about this stock — the intangible X-factor (founder mythology, cult dynamics, TAM-of-imagination) that moves price beyond what cash flows alone explain. After Shiller, Narrative Economics.
No narrative profile yet for MPWR — it's generated by the pipeline (market-narrative step).
Claude Reading
Independent analyst synthesis · claude-opus-4-7 · generated 2026-07-30 19:22:07
Verdict Overvalued by roughly 2x on any traditional semi framework — fair value $550-$700 vs $1,316; excellent business, wait for AI-capex digestion to compress the multiple before entry.

The raw numbers first: MPWR is putting up a genuinely impressive quarterly trajectory — $507M → $620M → $621M → $638M → $665M → $737M → $751M → $804M sequential quarters, with the most recent Q at +26% YoY and +7% QoQ. Net margins have re-expanded from 19.8% to 24%. Gross margin sits at 55%, operating margin 26%, and the balance sheet carries zero debt against $1.1B cash and $3.5B equity. FCF of $666M on $2.79B revenue is a 24% FCF margin. The 2024-Q4 "$1.45B net income" is a tax/deferred-tax artifact, not operations — ignore it and the 233% margin. This is not a narrative_platform; the rule-based classifier is wrong. MPWR is a highly profitable, cash-generative fabless analog semi with real earnings. The pre-flight override to "traditional" is correct, and the anomaly warnings telling me to discount P/E and ROE because it's a "narrative platform" should be disregarded — those metrics *are* meaningful here.

That said, the valuation math is brutal regardless of classification. $64.7B market cap on $2.79B TTM revenue and ~$700M in NI (normalizing out the 2024 tax benefit) is ~23x sales and ~90x normalized earnings. Even annualizing the Q1'26 run-rate ($804M × 4 = $3.2B revenue, ~$770M NI), you're at 20x forward sales and 84x forward earnings. For an analog semi vendor — even a best-in-class one — this is priced for sustained 25%+ growth and margin expansion for years. FCF CAGR of only 7.1% while revenue CAGR is 23.8% is a yellow flag: capex is climbing ($172M), working capital is absorbing cash, and FCF is not scaling with the top line. That gap matters — it suggests either inventory build ahead of demand or that the AI-cycle revenue is less capital-light than the narrative implies.

The prior models converge on "priced for perfection / neutral / wait" and I agree with the direction but think they're slightly too generous on the bull case durability. The narrative layer nails it: ~70% of price is story premium. The contrarian argument that isn't getting enough weight: analog power management is historically cyclical, and MPWR's customer concentration in AI/data-center is the same concentration that killed the SiC names (WOLF, ON's SiC segment) when hyperscaler orders paused. TI and Infineon are not sitting still — TI's $30B+ capex program explicitly targets analog share recapture, and they can subsidize price. The revenue confidence signal flags "decelerating quarterly trend," which is true on a QoQ basis (26% → 11% → 4% → 4% → 11% → 2% → 7%) — nothing catastrophic, but not the smooth 25%+ compounder the multiple demands. Insider selling on 2026-07-15 (ten separate sales same day) looks like scheduled 10b5-1 activity, not a smoking gun, but there is zero insider buying anywhere in the file.

Where I'd push back on the models: the "traditional" classification should drive the fair-value math more explicitly. Apply a generous but defensible 30x forward earnings (roughly ADI/TXN premium territory for a faster grower) to a normalized $850M forward NI and you get ~$25B market cap, or roughly $510/share. Even at a lush 40x — treating MPWR as a premier growth compounder — you get ~$680. To justify $1,316, you need ~78x forward earnings held indefinitely, which requires the bull-case AI narrative to be *right and durable* through the next capex digestion cycle. I don't think 25%+ growth survives a hyperscaler pause. I dissent slightly from the "neutral / wait" framing because "wait" understates how far the stock has to fall to become interesting — this isn't a 15-20% overvaluation, it's a 2-2.5x overvaluation on any traditional semi framework. The synthesis calls it "priced for perfection"; I'd call it "priced for a perfection that history says analog semis don't deliver."

GPT Reading
Independent reading · gpt-5.4 · generated 2026-07-30 19:22:22
Verdict Overvalued at $1,316 — elite fundamentals are real, but the stock is priced for an AI power-management supercycle that leaves little room for merely excellent execution; fairer value is closer to $900.

MPWR is a superb business and, at this price, a bad stock. The operating data are genuinely strong: quarterly revenue has gone from $507.4M in June 2024 to $804.2M in March 2026, a 58% increase in seven quarters, and the latest quarter was up 26.1% year over year from $637.6M. Annual revenue rose from $2.21B in 2024 to $2.79B in 2025, up 26%, while gross margin held at a very healthy 55.2% and operating margin improved to 26.1%. This is not a hype-only company; it has $1.10B of cash, no debt, generated $838.2M of operating cash flow and $666.2M of free cash flow in 2025, and earns high returns on capital. The core story the numbers tell is that MPWR is taking share in attractive power-management niches and converting that into real cash without balance-sheet risk.

What stands out, though, is that the valuation already assumes years of near-flawless execution. At $64.7B market cap, investors are paying 22.8x sales, 82x EV/EBITDA, and 102x earnings on 2025 numbers for a semiconductor company with 26% revenue growth and low-20s net margins. Even if I annualize the March 2026 quarter, I only get a revenue run rate of roughly $3.2B and net income run rate of about $773M; that still implies around 20x sales and roughly 84x earnings. Those are software-like multiples on a fabless analog chip company. The quarterly progression is good but not explosive: revenue stepped from $620.1M in Sep-2024 to $621.7M in Dec-2024, then $637.6M, $664.6M, $737.2M, $751.2M, and $804.2M. That's healthy acceleration, but nowhere near enough to justify a price that effectively discounts a multi-year AI supercycle with no digestion, no pricing pressure, and no cyclical reset.

There is also noise in the earnings series that should make investors more conservative, not less. The 2024 annual net income of $1.79B is clearly distorted by the anomalous $1.45B quarter in December 2024, so any screen showing low trailing P/E on that period would be misleading. On more normalized numbers, MPWR earned $621.5M in 2025 and margins ran around 20-24% in most quarters. That is excellent profitability, but not the sort of margin structure that can absorb a valuation miss. If revenue growth slips from the current 26% area toward the mid-teens — still a very respectable result for analog semis — the stock has a long way to fall before the multiple resembles something supportable by fundamentals. Heavy insider selling, even without amounts disclosed in dollars here, reinforces that management and insiders may view current levels as an opportunity to de-risk rather than accumulate.

The best argument against my bearish read is straightforward: MPWR may be one of the few analog names that deserves to break historical valuation frameworks because its content opportunity in AI power delivery could be much larger than backward-looking financials capture. The March 2026 quarter posted 24% net margin on $804.2M of revenue, versus 21.2% on $637.6M a year earlier, so there is evidence of operating leverage. If the company can sustain 25%+ growth from a $3B base while keeping gross margin around 55% and free cash flow conversion strong, today's multiple can compress through earnings growth rather than price decline. A debt-free balance sheet and 24.3% ROIC also mean this is a quality compounder, not a promotional story stock. I weigh that case less heavily because the stock is not merely expensive; it is priced as if those assumptions are the base case rather than the upside case.

What would change my mind is not another good quarter; it would take evidence that the growth curve is steepening enough to outrun the valuation. Specifically, I would need to see revenue move decisively above a $1.0B quarterly run rate within the next few quarters, with net margins sustaining at or above 25% and annual free cash flow pushing toward or beyond $1.0B. Short of that, a better entry would do the work: if the shares fell into the $850-$950 range without operational deterioration, the setup would become much more compelling because the multiple would begin to match even a bullish-but-not-fantastical growth path.

Grok Reading
Independent reading · grok-4.5 · generated 2026-07-30 19:22:56
Verdict High-quality AI-power analog franchise irreversibly expensive at $1316 / 23× sales / 102× earnings — wait for $800–850

Monolithic Power is executing: quarterly revenue has climbed from $507M in mid-2024 to $804M in the March 2026 quarter, a clean stair-step that produces a 26% recent year-over-year print and a five-year revenue CAGR near 24%. Annual sales hit $2.79B in 2025 with a 55% gross margin, 26% operating margin and $666M of free cash flow after only $172M of capex. The balance sheet is fortress-grade—$1.1B cash, zero debt, current ratio nearly 5×—and ROIC sits at a respectable 24%. Those are the numbers of a high-quality analog franchise that has genuinely won design sockets in high-density power delivery. Yet the market is paying $65B, or 23× sales and 102× trailing earnings, for that franchise. Strip out the 2024 one-time $1.45B net-income spike that produced a nonsensical 233% quarterly margin, and normalized earnings power is roughly $620M; even giving the company another year of 25% top-line growth and modest margin expansion leaves forward earnings still priced at roughly 70–80×. Free-cash-flow CAGR of only 7% over the same period that revenue compounded at 24% further undercuts the idea that operating leverage is compounding as aggressively as the multiple implies. The stock is therefore a pure duration bet on multi-year AI power-content growth remaining above 25% with no competitive encroachment and no cyclical air-pocket—an assumption the 70% narrative premium embedded in the price makes explicit.

The prior models correctly flag “priced for perfection” and an unanchored AI-infrastructure story, but they still under-weight how completely the valuation has detached from semiconductor history. Analog names with similar gross margins and sticky design wins have rarely sustained mid-20s revenue growth for more than a couple of years once the initial design-win wave matures; TI and Infineon are already competing on integration and price in the same sockets. Insider activity reinforces the caution: ten open-market sales clustered on a single July 2026 date with zero purchases. Revenue growth is already flagged as decelerating. At 82× EV/EBITDA the market is not merely optimistic—it is assuming the current trajectory is structural rather than cyclical.

The strongest contrary case is straightforward and data-backed. Sequential revenue acceleration into 2026 ($665M → $737M → $751M → $804M) plus net-margin expansion from the low-20s into the mid-24% range shows real operating leverage kicking in exactly where the AI power-density narrative predicts. Zero leverage and $666M of annual FCF give management permanent optionality to defend share or buy back stock. If data-center GPU racks continue to double power draw every generation, MPWR’s content per system can grow faster than unit volumes, potentially justifying a longer runway of 25%+ growth than skeptics allow. A smart bull would also note that the 2024 earnings base is distorted downward by the one-time item’s reverse comparison, so the –65% earnings “decline” is noise; clean earnings are compounding in the low-20s. Those points are real. I simply weigh them as already more than fully discounted at 23× sales: the bull case has to arrive on schedule for five-plus years with almost no slippage, or the multiple collapses.

I would flip to neutral or constructive only if the next two reported quarters show re-acceleration above 30% year-over-year revenue growth together with operating margin pushing through 28%, or if the shares corrected 35–40% into the $800–850 zone where forward earnings multiple compresses into the mid-40s on still-growing numbers. Until one of those two things happens, the asymmetry is unfavorable.

Big-3 Panel — where each AI stands
Each AI above independently stated a direction (undervalued, fairly valued, or overvalued) and how strongly it believes it (conviction, 0–5). We combine those into a Bull-Bear Index on a 0–10 scale: 5 is neutral, 10 is maximum bullish (undervalued at full conviction), 0 is maximum bearish. We compute the score ourselves with the same arithmetic for every seat — the models never grade their own bullishness — so the three are directly comparable. Δ shows how far each seat sits from the panel average of 1.0; a large Δ marks the dissenting voice, usually the one worth reading.
Claude claude-opus-4-7 1.0
overvalued · conviction 4/5 · Δ +0.0 vs panel · self: 3.0
GPT gpt-5.4 1.0
overvalued · conviction 4/5 · Δ +0.0 vs panel · self: 3.0
Grok grok-4.5 1.0
overvalued · conviction 4/5 · Δ +0.0 vs panel · self: 3.0
Advanced Analysis Forensic deep-dive · separate lenses
Separate reads — Company Quality (is it a great business?), Valuation (is it mispriced?), and General Sentiment (how macro + narrative are pushing it), kept deliberately apart · 2026-07-30 19:29:42
Delvantic - Cairn AI
Quality - wait for a dip 8/10
Elite fabless analog compounder priced for perfection at $1,316 - great business, wrong price, wait for the pullback.
The cruxWhether AI-power-management growth stays above 20% long enough to grow into a mid-40s P/E, or normalizes and forces a multiple reset.
Forensic checks Derived mechanically from MPWR's filed financials — not from the AI lenses
Liquidity & RunwaySelf-Funding
DilutionStable Share Count
Earnings QualityGood Earnings Quality
The four lensesswitch a tab for its full read — score + evidence
Company Quality
+81
Fortress
edge √Σ 167 · risk √Σ 52 · conf 8/10

Revenue has compounded from $1.21B (2021) to $2.79B (2025), a ~23% CAGR, with gross margins parked in a 55-58% band and operating margins holding 24-29% through a cyclical semi downturn in 2023. Free cash flow scaled from $225.6M to $666.2M and net cash sits at $1.26B with zero debt drag; Altman Z of 61 and OCF/NI of 1.03x confirm the earnings are cash-backed and the balance sheet is essentially indestructible. Accruals at 3.3% of assets and a Beneish M of -2.63 show no manipulation footprints. The 2024 net income spike to $1.79B looks like a discrete tax/one-time item (FCF was only $642M that year and 2025 NI normalized to $621M) - worth verifying but not a quality concern given cash generation stayed on trend. Diluted share count barely moved (47.9M to 48.3M over five years, 0.2% CAGR), and SBC at 8.2% of revenue is reasonable for a fabless analog designer, though buybacks recover only ~75% of SBC so shareholders are absorbing modest net dilution. Insider selling ($188M across 58 sales, zero buys) is heavy in absolute terms but common for a stock that has appreciated massively; the tape shows programmatic-looking slices by Sciammas rather than a rush for the exit. The business fundamentals - durable analog/power IC franchise, expanding into AI power delivery, high-teens/20s operating margins, self-funding growth - point to a top-decile operator.

Strengths 5
m85
Fortress balance sheet
$1.26B net cash, no debt, Altman Z of 61.17 - survival is a non-question and the company self-funds all growth with $666M annual FCF.
m80
Durable growth through the cycle
Revenue compounded 23% CAGR from $1.21B to $2.79B (2021-2025) with only a modest 2023 pause; operating margin held above 24% throughout.
m75
Clean earnings quality
OCF/NI 1.03x, accruals just 3.3% of assets, Beneish M -2.63 - mechanical checks find zero manipulation flags and cash conversion is honest.
m70
Per-share discipline preserved
Diluted shares crept only from 47.9M to 48.3M over five years (0.2% CAGR); dilution is not eroding per-share value in any meaningful way.
m60
High-margin fabless analog franchise
Sustained 55%+ gross margins and mid-20s operating margins in a cyclical industry imply real pricing power and design-win stickiness in power management ICs.
Concerns 3
m35
Buybacks only offset dilution
Repurchases recover ~75% of the 8.2%-of-revenue SBC, meaning capital return is largely mopping up equity comp rather than shrinking the share count.
m30
Heavy insider selling, zero buying
58 sales totaling $188.6M and no open-market purchases in the last 12 months; pattern looks programmatic but the one-way flow warrants monitoring.
m25
2024 net income anomaly
Reported NI of $1.79B in 2024 versus $642M FCF and $621M NI in 2025 suggests a one-time tax or accounting item that should be reconciled in the 10-K.
This is a genuinely high-quality business - one of the better-run fabless analog franchises in the market. The financial architecture is pristine: net cash, 23% top-line CAGR, sustained 55%+ gross margins, cash-backed earnings, and a diluted share count that has barely moved in five years. Forensic checks come back clean across the board. My reservations are modest: buybacks only neutralize SBC rather than shrinking equity, insiders are one-way sellers (defensible given the run but still worth noting), and the 2024 NI print is anomalous versus cash generation. Semi cyclicality and customer concentration are real but manageable risks. I'd put this in the top decile of quality - clearly Fortress-adjacent, held just below the 92 rung because a semis company with concentrated end-market exposure and net dilution can't quite claim 'essentially nothing soft.'
Verify before trusting this (5)
  • Reconcile 2024 net income of $1.79B (likely a discrete tax benefit or gain) against the $642M FCF that year
  • Customer concentration disclosure - historically MPWR has had meaningful exposure to a few hyperscaler/enterprise customers
  • AI/data-center power delivery revenue mix and any commentary on NVIDIA-related design-win status given prior noise on this topic
  • Whether recent insider sales are under 10b5-1 plans or discretionary
  • SBC trajectory and dilution offset commitments in the buyback authorization
Valuation / Mispricing
-60
Rich
edge √Σ 30 · risk √Σ 100 · conf 7/10
Price $1,316 sits at or slightly above deserved value for a Fortress-quality compounder; a reasonable margin of safety would require closer to $950-1,050 (roughly 20-25% lower). attractive below $950.00

MPWR is a genuinely elite analog franchise (Fortress, 81), but the e2e synthesis itself flags 'Priced for Perfection' at $1,316. On roughly $2.2B TTM revenue and low-single-digit-billion earnings power, a $64.7B market cap implies a mid-to-high 40s P/E and ~30x sales, which requires sustained 20%+ growth and margin expansion for years. That is plausible given AI power-management tailwinds, but it is the base case already discounted into the tape, not the upside.

Cheap signals 1
m30
Earnings quality is real, not manufactured
Good earnings-quality score means no haircut to deserved value - cash-backed EPS and flat share count justify a premium multiple, softening (but not erasing) the richness.
Rich / priced-in 3
m70
Priced for perpetual AI-cycle growth
The e2e synthesis label is explicitly 'Priced for Perfection.' At ~$64.7B cap on a mid-cap analog vendor, the multiple bakes in continued 20%+ growth well past the AI capex peak.
m55
No visible margin of safety
Even crediting Fortress quality (net cash, 55%+ GM, clean earnings), the deserved premium is already in the price. There is no gap to underwrite - reward requires the bull narrative to fully play out.
m45
Cyclical reversion risk not discounted
Bear case flags AI capex normalization in 18-24 months and pricing pressure from TI/Infineon. Current multiple leaves no room for a growth deceleration to the high teens, let alone a cyclical air pocket.
This is a great business at a full price - exactly the setup that scores mediocre on a valuation lens. I am not short it and I respect the franchise, but at $1,316 I am paying the seller's price for a base case that assumes the AI power-density thesis compounds uninterrupted. I want a 20-25% pullback, say sub-$1,000, before the risk/reward tilts my way. Until then, fairly-to-richly valued and I sit out.
Verify before trusting this (4)
  • Forward revenue guidance and enterprise/data-center mix disclosure
  • Any signs of gross margin compression from competitive pricing
  • Customer concentration updates (NVIDIA-related exposure) in 10-Q
  • Inventory and channel days to detect early cycle rollover
General Sentiment
+14
Tailwind
tail √Σ 99 · head √Σ 84 · conf 6/10

MPWR just printed a Q2 beat (+47.6% YoY revenue, +10.5% EPS surprise) with next-quarter guide above the Street, and the stock jumped 10.5% on the print. That is a direct, name-specific refuel of the platform-monopoly narrative (AI power backbone, edge, autonomous) with strong intensity and medium cult following. The story is doing the heavy lifting here, and the tape reaction confirms buyers are still leaning in on AI-infrastructure winners that actually deliver. Working against it: the macro backdrop is stress (VIX 20.7, S&P off highs), and with a 1.71 beta MPWR is exactly the profile that gets whipped in risk-off days - evidenced by the July 29 semi sell-off tied to China competition and AI-demand sustainability fears. The bear frame (80x forward PE, 60% implied growth, commoditization risk from TI/Infineon) is a real overhang that limits how far this rip can extend without follow-through. Net: fresh, name-specific tailwind from earnings and narrative reinforcement outweighs the macro/high-beta drag, but this is not a slam-dunk given the tape and the multiple.

Tailwinds 3
m72
Beat-and-raise refuels the AI-power narrative
Q2 revenue +47.6% YoY, +10.5% EPS surprise, guide above consensus, stock +10.5% on the print. Directly re-validates the platform-monopoly story at exactly the moment bears were pressing the 'AI capex peaking' thesis.
m58
Strong, still-intact narrative archetype
Platform-monopoly framing with strong intensity and medium cult - the kind of story that attracts incremental buyers when the print confirms it. Momentum is strong_positive (23.8% CAGR) and analysts were already reframing lofty earnings projections into the AI thesis.
m35
Analyst tone likely to nudge higher post-print
A double-digit beat plus above-guide print typically triggers a wave of target-price bumps in the following 1-2 weeks, which supports the tape near-term even against a stressed macro.
Headwinds 3
m55
Risk-off tape hits a 1.71-beta chip name hard
VIX in the 97th percentile and S&P -3.9% off highs is the exact regime that punishes high-beta AI-adjacent semis. MPWR's beta means macro drawdowns will still bleed the stock even when the fundamentals cooperate.
m50
China competition and AI-demand-sustainability fears rotating through semis
The July 29 broad semi sell-off explicitly cited China competition and doubts about AI demand durability. This is a live sector-narrative crack that can re-emerge on any negative datapoint and specifically targets MPWR's bull case.
m40
Narrative-premium overhang caps upside
With ~70% of price framed as narrative premium at 80x forward PE, sentiment is already stretched - any wobble in AI-capex commentary from hyperscalers or a peer miss would de-rate the whole cohort quickly.
Net tailwind, but not a strong one. MPWR just handed the bulls exactly what they needed - a big beat and raise that reasserts the AI-power-monopoly story - and the stock's 10.5% pop shows the narrative is still magnetic to buyers. That is a real, name-specific force pushing this stock up right now. But I have to weight the tape: 1.71 beta into a VIX-20 stress regime with an active 'AI demand peaking / China competition' sector-narrative crack means the macro can still overwhelm the good news on any given day. I lean tailwind because the earnings catalyst is fresh and directional, but this is the kind of setup where a hyperscaler capex wobble or one bad tape day could flip the read fast.
Verify before trusting this (5)
  • Post-earnings analyst target revisions over next 5-10 days - magnitude and breadth of upgrades
  • Hyperscaler capex commentary from MSFT/META/GOOG/AMZN prints to confirm or crack the AI-power demand story
  • Whether the semi sector holds relative strength vs SPX in the next risk-off session - the tell on cohort de-rating
  • China competitive commentary from TI/Infineon prints; any share-loss datapoint would hit the bull thesis directly
  • VIX path - a move back under 17 unlocks more upside; a spike over 25 overwhelms name-specific tailwinds
The market-wide tape + this name's exposure to it (beta / sector / narrative durability). Context on the non-fundamental pressure — not a call on the business or the price. processId: detail-general-sentiment
Growth Outlook
not run

This lens hasn't been run for this ticker yet.

The forward growth verdict — is the business itself likely to grow (next 2 quarters / year 1 / years 2–3), judged against its category and against printed expectations. The full horizon ladder + creme renders on the Growth Outlook card above. Not a call on the price (Valuation owns that) or the tape (Sentiment owns that).
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Lenses kept deliberately separate — Company Quality (price-agnostic), Valuation (price-conditional), General Sentiment (non-fundamental macro/narrative pressure), and Growth Outlook (the forward growth verdict). The scores are not blended. Filing-level items (convertibles, lock-ups, customer concentration) are v2 — see each lens's "verify."
Price Prediction
Lower -8.1% v0.6.0 View full prediction →

When we made this prediction on Jul 31, 2026, MPWR was $1,316.18. We expect it to be $1,210.00 by Jan 2027, and we consider it great value under $950.00. This is an early model (v0.6.0) — the direction is more reliable than the exact price. Made Jul 31, 2026.

Price when predicted$1,316.18
Our estimate for Jan 2027$1,210.00-8.1%
Great value below$950.00
Price history shown (6 Months)

Blue is our prediction, starting the day we made it. Grey is a slower route to the same place — the same destination, taking longer. Black is the actual price, so you can see how we are doing.

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My Notes personal — only you see this
v1.1.562 · 9b2927c4 · 2026-08-22 16:52:06