Goldman Sachs’ Best Phase 2 AI Stocks: Top 24 High Conviction AI Stocks

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

Year To Date Share Price Gain: 55.38%

Number of Hedge Fund Investors in Q2 2024: 35

Monolithic Power Systems, Inc. (NASDAQ:MPWR) is a Washington based semiconductor products provider. Its chips include voltage control, power management, and other chips. These products, along with others such as inductors provide it with a wide exposure to data centers as they are essential for efficient power management of the facilities that AI companies estimate can use as much as one gigawatt of electricity. The strong demand for Monolithic Power Systems, Inc. (NASDAQ:MPWR)’s products has meant that not only are its shares up by more than 55% year to date, but that the firm has also grown its revenue consecutively year over year. In 2021, 2022, and 2023, Monolithic Power Systems, Inc. (NASDAQ:MPWR) earned $1.2 billion, $1.79 billion, and $1.82 billion in revenue, respectively. Over the 2020 figure of $844 million, the 2023 revenue marks a whopping 116% growth. In Q2, the firm posted $507 million in revenue for a 10.8% growth. Enterprise data sales have powered Monolithic Power Systems, Inc. (NASDAQ:MPWR)’s growth, as the segment’s sales jumped by 217% during Q1.

ClearBridge Investments mentioned Monolithic Power Systems, Inc. (NASDAQ:MPWR) in its Q2 2024 investor letter. Here is what the firm said:

“Another top individual contributor was Monolithic Power Systems, Inc. (NASDAQ:MPWR), in the IT sector, which makes semiconductor-based power electronics for the computing and storage, automotive, industrial, communications and consumer markets. Continued demand for AI-related companies and beneficiaries and anticipation of greater demand for data center components such as power management hardware for CPUs helped drive strong performance in the quarter. We believe Monolithic is one of the most attractive semiconductor plays within the SMID universe and that the company will continue to gain share in analog semiconductors as it wins design contracts.”