Monolithic Power rides on the AI wave, projects strong first quarter

Monolithic Power Systems

07/02/2024 21:34

Feb 7 (Reuters) - Monolithic Power Systems  MPWR.O 
forecast current-quarter revenue above estimates as demand for
its power control modules and other hardware used in artificial
intelligence applications grew.
    Shares of the Kirkland, Washington-based company rose 6.1%
in trading after the bell.
    Monolithic Power, which makes power control modules used in
servers and data centers,  is set to benefit from the growing
demand for artificial intelligence tools.
    Analysts expect the anticipated AI boom will help the
company offset poor demand in its other segments- Automotive and
Industrials.
    The company expects its first-quarter revenue between $437
million and $457 million, compared with estimates of $430.8
million.
    Revenue for the fourth quarter was $454 million, above the
analysts' average estimate of $452.1 million, according to LSEG
data.
    Sales in the company's largest segment, enterprise data,
rose to $128.9 million in the December quarter from $68.4
million a year earlier.
    The company reported a profit of $2.88 per share in the last
three months of the year, while analysts expected a net income
of $2.85 per share.

 (Reporting by Akash Sriram in Bengaluru; Editing by Tasim
Zahid)
 ((Akash.Sriram@thomsonreuters.com; On X as @HoodieOnVeshti;
+91-74116-87774;))