We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Monolithic Power's GFS Production Deal Drive Future Growth?
Read MoreHide Full Article
Key Takeaways
MPWR will deploy its process technology at GlobalFoundries' 300mm Singapore facility.
Volume production is expected in early 2027 to support rising demand for power management solutions.
Monolithic Power will serve AI, cloud, automotive, robotics and industrial automation markets.
Monolithic Power Systems, Inc. (MPWR - Free Report) is strengthening its manufacturing capabilities through a new long-term agreement with GLOBALFOUNDRIES Inc. (GFS - Free Report) to increase production capacity for its advanced power management technologies. The collaboration is expected to support Monolithic Power’s expansion across artificial intelligence (AI), automotive, industrial and data center markets.
Under the agreement, Monolithic Power will deploy its proprietary process technology at GlobalFoundries’ advanced 300mm manufacturing facility in Singapore. Volume production is expected to begin in early 2027, giving the company additional capacity to meet rising demand for power solutions used in next-generation electronic systems.
The company will manufacture solutions for automotive platforms, industrial robotics and automation as well as smart power stages for AI and cloud infrastructure. By combining its proprietary technology with GlobalFoundries’ manufacturing capabilities, Monolithic Power aims to increase production, improve supply availability and expand its global manufacturing capacity.
As investment in AI infrastructure, cloud computing, vehicle electrification and industrial automation continues to grow, Monolithic Power is likely to benefit from rising demand for high-performance and efficient power management solutions.
How Are Competitors Advancing?
Monolithic Power faces stiff competition from Analog Devices, Inc. (ADI - Free Report) and Microchip Technology Incorporated (MCHP - Free Report) . Analog Devices continues to strengthen its global manufacturing capacity to meet growing demand for its semiconductor solutions. The company is expanding its production capabilities to support customers across industrial, automotive, communications and other markets. ADI’s manufacturing efforts focus on increasing production efficiency, flexibility and supply-chain resilience.
Microchip is ramping up its manufacturing operations as demand for its semiconductor products improves. The company is increasing activity across its front-end and back-end facilities to improve capacity utilization and better serve customers. Microchip is also strengthening its supply capabilities to provide greater flexibility.
MPWR’s Price Performance, Valuation & Estimates
Monolithic Power shares have soared 43.3% over the past year compared with the industry’s 40% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Monolithic Power trades at a forward price-to-sales ratio of 12.25, above the industry tally of 7.75.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have increased 12.7% to $27.11 over the past 60 days, while those for 2027 have increased 18.5% to $34.73.
View the Zacks #1 Rank List
Image: Bigstock
Can Monolithic Power's GFS Production Deal Drive Future Growth?
Key Takeaways
Monolithic Power Systems, Inc. (MPWR - Free Report) is strengthening its manufacturing capabilities through a new long-term agreement with GLOBALFOUNDRIES Inc. (GFS - Free Report) to increase production capacity for its advanced power management technologies. The collaboration is expected to support Monolithic Power’s expansion across artificial intelligence (AI), automotive, industrial and data center markets.
Under the agreement, Monolithic Power will deploy its proprietary process technology at GlobalFoundries’ advanced 300mm manufacturing facility in Singapore. Volume production is expected to begin in early 2027, giving the company additional capacity to meet rising demand for power solutions used in next-generation electronic systems.
The company will manufacture solutions for automotive platforms, industrial robotics and automation as well as smart power stages for AI and cloud infrastructure. By combining its proprietary technology with GlobalFoundries’ manufacturing capabilities, Monolithic Power aims to increase production, improve supply availability and expand its global manufacturing capacity.
As investment in AI infrastructure, cloud computing, vehicle electrification and industrial automation continues to grow, Monolithic Power is likely to benefit from rising demand for high-performance and efficient power management solutions.
How Are Competitors Advancing?
Monolithic Power faces stiff competition from Analog Devices, Inc. (ADI - Free Report) and Microchip Technology Incorporated (MCHP - Free Report) . Analog Devices continues to strengthen its global manufacturing capacity to meet growing demand for its semiconductor solutions. The company is expanding its production capabilities to support customers across industrial, automotive, communications and other markets. ADI’s manufacturing efforts focus on increasing production efficiency, flexibility and supply-chain resilience.
Microchip is ramping up its manufacturing operations as demand for its semiconductor products improves. The company is increasing activity across its front-end and back-end facilities to improve capacity utilization and better serve customers. Microchip is also strengthening its supply capabilities to provide greater flexibility.
MPWR’s Price Performance, Valuation & Estimates
Monolithic Power shares have soared 43.3% over the past year compared with the industry’s 40% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Monolithic Power trades at a forward price-to-sales ratio of 12.25, above the industry tally of 7.75.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have increased 12.7% to $27.11 over the past 60 days, while those for 2027 have increased 18.5% to $34.73.
Image Source: Zacks Investment Research
Monolithic Power currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.