Monolithic Power forecasts third-quarter revenue above estimates on AI boom

Monolithic Power Systems

01/08/2024 21:31

Aug 1 (Reuters) - Monolithic Power Systems  MPWR.O 
forecast third-quarter revenue above estimates on Thursday,
benefiting from robust demand for its power control modules and
hardware employed in artificial intelligence applications,
sending its shares up 7%.
    Kirkland, Washington-based Monolithic, which sells power
circuits and other semiconductor products, is seeing demand
scale as enterprises upgrade their cloud and network
infrastructure to support new AI capabilities and the growing
internet user-base.
    Monolithic projects third-quarter revenue in the range of
$590 million to $610 million, compared to analysts' estimate of
$549.8 million, according to LSEG data.
    The strong forecast highlights that the AI boom will help
the company offset poor demand in its automotive segments, which
has seen sales of electric vehicles slowdown in the face of high
interest rates.  
    Revenue for the second-quarter stood at $507.4 million,
beating analysts' estimate of $490.7 million.
    Sales in the company's largest segment, enterprise data,
rose to $187.2 million in the June quarter from $48 million a
year earlier.
    Profit on an adjusted basis was $3.17 per share in the
quarter ended June 30, while analysts expected a net income of
$3.07 per share.
    

 (Reporting by Juby Babu in Mexico City and Priyanka.G in
Bengaluru; editing by Alan Barona)
 ((Juby.Babu@thomsonreuters.com))