Monolithic Power Systems shares climbed 6.4% on Friday, closing at $1,229.82 and setting a fresh 52-week high. The rally followed the company's optimistic financial outlook and a significant increase in shareholder returns.
Financial Performance and Outlook
The semiconductor firm reported fourth-quarter revenue of $751.2 million, a 20.8% year-over-year increase. For the current quarter, management projects revenue between $770 million and $790 million. Additionally, the board approved a boost in the quarterly cash dividend to $2.00 per share, up from the previous $1.56.
Leadership Transition and Insider Activity
The company announced that Chief Financial Officer Bernie Blegen will retire following the filing of the 2025 annual report. Corporate Controller Rob Dean has been appointed interim CFO to ensure a smooth transition. In a separate filing, CEO Michael Hsing submitted a Rule 144 notice regarding 3,082 shares, indicating a potential future sale.
Analysts reacted swiftly to the results, with several raising price targets. KeyBanc increased its target to $1,500, while Wells Fargo lifted its outlook to $1,350.
Management highlighted a rebound in its Enterprise Data segment, which generated $233.5 million in the fourth quarter. Executives also pointed to growing momentum for power management solutions tailored for artificial intelligence and server applications.
Traders will monitor the stock's ability to hold the $1,200 level in the coming sessions as the initial post-earnings momentum settles. The company's performance is increasingly viewed as a barometer for data center and AI infrastructure spending.
