35 Chip Stocks Powering AI Boom

26. Monolithic Power Systems, Inc. (NASDAQ:MPWR)

Number of Hedge Fund Holders: 35

Monolithic Power Systems, Inc. (NASDAQ:MPWR) engages in the design, development, marketing, and sale of semiconductor-based power electronics solutions for the computing and storage, automotive, industrial, communications, and consumer markets. The firm is heavily exposed to AI verticals. In the latest earnings report, the firm posted 16% quarter-over-quarter increase in data-related sales. In the previous two quarters, this figure was 30% and 106%, respectively. Year-over-year, the jump in sales was 217% in the first quarter of 2024, representing 33% of total sales. These numbers offset slowing demand from other sectors like consumer, industrial, and automotive.

Monolithic Power Systems, Inc. (NASDAQ:MPWR) has earned bullish reviews from top market experts. Raymond James recently raised the price target on the stock to $925 from $770 and kept an Outperform rating, noting that enterprise data again led the strong upside in the quarter, largely driven by continued momentum in the GPU ecosystem, and Monolithic Power maintained a leadership position in the fastest growing applications for AI datacenter power, with incremental drivers coming as other end markets began to inflect higher.