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Monolithic Power Systems rallies on AI data center power demand
The stock is up more than 40% year to date, and first-quarter revenue rose 26.1% year over year as power management sales scaled with AI infrastructure builds.
Monolithic Power Systems has surged alongside the AI infrastructure build-out, with the company’s power management systems used to help data centers maintain uptime and manage heat for AI chips, according to Yahoo Finance and The Motley Fool. The outlet says the company’s shares are up more than 40% year to date, and it points to growing demand for its enterprise data and communications businesses as key drivers. Monolithic Power Systems reported revenue growth of 26.1% year over year in the first quarter, with net income increasing at a slightly faster pace, Yahoo Finance reports. Enterprise data, which covers power management and integrated solutions for AI chips and servers, accounted for about one-third of sales and nearly doubled year over year, while the communications segment focused on telecom infrastructure, satellite systems, and networking equipment. In that communications segment, revenue was up 55.5% year over year and up 33.1% sequentially, the outlet says, helped by AI tailwinds, and it makes up 14% of total sales. Yahoo Finance adds that two fast-growing segments could support continued revenue acceleration as hyperscalers gain market share for related connectivity and power management needs.