Monolithic Power Hits $804M Q1 Revenue, Raises Capacity Target to $6B
MPWR•Monolithic Power delivered record Q1 revenue of $804M, up 7% sequentially and 26% year-over-year, driven by 33% sequential growth in communications and an 85% year-over-year enterprise data forecast. The company raised its capacity expansion target to $6B and cautioned on notebook headwinds plus flat auto growth in H1.
1. Record Q1 Revenue and Strong Segment Growth
In Q1 2026, Monolithic Power achieved record revenue of $804 million, up 7% sequentially and 26% year-over-year, driven by a 33% sequential jump in its communications end market. The enterprise data segment forecast was raised to 85% year-over-year growth on robust demand across CPU and module transitions.
2. Expanded Capacity Target to $6 Billion
The company increased its manufacturing capacity expansion goal from $4 billion to $6 billion to support growing demand, with ongoing diversification of its global supply chain to enhance supply stability and capture new opportunities.
3. Notebook Headwinds and Auto Segment Outlook
The notebook segment faces margin pressures and memory shortages, while the auto sector is expected to remain flat in the first half of 2026 with growth resuming later. Gross margins sit at the lower end of the model, with potential second-half headwinds.
4. Leadership Insights on Enterprise and Storage Demand
Management highlighted sustained CPU tailwinds and strong data-center storage demand driven by DDR5, though uncertainty persists around project ramp timing and differentiating AI versus CPU growth contributions.
