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Monolithic Power Systems, Inc. MPWR Monolithic Power Systems, Inc. (MPWR) recently provided an update on its financial guidance for the first quarter of 2025, ending March 31, 2025. The revised forecast includes upward adjustments in both revenues and operating expenses.
MPWR’s Upgraded Guidance
Management now expects first-quarter revenues between $630 million and $640 million, indicating a rise from the previously announced forecast of $610 million to $630 million. GAAP operating expenses are projected to be in the band of $184.9 million-$190.9 million, exceeding the earlier estimate of $180.2 million to $186.2 million. It implies that the company is investing significantly more resources than anticipated in its research and development efforts, thereby expanding its technological footprint.
Non-GAAP operating expenses, which exclude the effect of stock-based compensation and related expenses, are now projected to be between $131.6 million and $135.6 million, higher than the initial guidance of $126.9 million to $130.9 million. This strong revenue growth is likely to be driven by the introduction of new products within existing product families, as well as in new product categories and segments. The increased demand for AI power solutions and improved order trends across multiple end markets are positives.
Will These Developments Drive MPWR’s Share Performance?
This upgraded financial outlook could boost investor confidence in Monolithic. An increased revenue projection implies strong business momentum, while the increased operating expenses reflect the company’s continued investment into new markets. All these advancements are likely to propel the stock upward.
MPWR Stock Price Performance
Shares of Monolithic have plunged 9.8% over the past year compared with the industry’s 14.9% decline.
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Zacks Rank and Stocks to Consider
Presently, Monolithic carries a Zacks Rank #3 (Hold).
Some better-ranked stocks have been discussed below:
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