Monolithic Power Systems (MPWR) Q1 FY26 earnings call: guidance and Q&A

How are XPU and CPU server trends differing within enterprise data, given strong demand elsewhere in server CPU?

Both XPU and CPU server trends are strong. CPU has been a tailwind since 2025 and continues in 2026. It's increasingly hard to differentiate AI solutions from CPU, but all growth drivers are intact, with new and existing customer ramps and module transitions.

“it's increasingly hard to differentiate between sort of AI solutions and CPU. But in general, all the growth drivers are intact.”

asked by Ross Seymore · answered by Tony Balow

What are the tailwinds/headwinds for Storage and Computing, and how do storage and computing differ?

Storage remains strong, indexed to data center business, with strength in DDR5, HDD, and SSD. Notebook side is more cautious due to potential TAM headwinds from memory shortages and lower-margin consumer focus.

“The storage side obviously has remained strong as it's really been indexed to a lot of the data center business. And we see strength in DDR5. We see strength in HDD and SDD continue out of last year and into Q1. On the notebook side, we're still more cautious on that side.”

asked by Ross Seymore · answered by Tony Balow

Update on the $6 billion capacity goal, geographic strategy, and latest BCD generation.

The company is still using 60-nanometer technology, potentially moving to 40-45 nanometers, focusing on increasing power density. The $6 billion capacity goal is driven by imminent design wins. The strategy is to maintain a geographically diverse supply chain, both inside and outside China.

“We are still around 60 nanometers and maybe we'll go down to 40, 45 nanometers. And these ones as a power density, as a market trend, the power increases and we increase the power densities.”

asked by William Stein · answered by Michael R. Hsing

How much of the incremental upside in Enterprise Data comes from CPU vs. AI accelerator content/share, given an analyst's assumption of 12% sequential growth for the June quarter?

It's difficult to separate CPU and AI accelerator contributions. The company focuses on winning sockets and delivering the best product. The growth drivers are intact, but parsing volume vs. content is challenging and specific.

“In reality, it's very difficult, okay, to separate it, okay. What is called AI, what is called servers.”

asked by Joshua Buchalter · answered by Michael R. Hsing

With top 4 CSPs spending over $700 billion in CapEx, is MPS able to capture all the upside, or are there supply constraints?

MPS is one of the few players capable of meeting demand due to its monolithic power solutions and power density advantage. The company has always been ready for upside and is not currently limited by supply constraints.

“MPS is one of the players. And as I promised over a year ago or so, and we continue to do well in many aspects, especially for the power density side.”

asked by Richard Schafer · answered by Michael R. Hsing

Could the Comms segment grow as fast or faster than Enterprise Data this year, given 800-gig module trends?

The company does not predict market trends but acknowledges strong activities and demand for high-power density modules in Comms. It's tough to call the full year, but Comms is expected to grow above the corporate average.

“I think it's pretty tough for us to call all the way through the back half right now. But certainly, we'd put that end market above the corporate average.”

asked by Quinn Bolton · answered by Tony Balow

What makes MPS unique in handling high power levels like those for 2000-watt GPUs?

MPS's uniqueness stems from its monolithic integration capabilities, allowing single-piece silicon solutions versus competitors' multiple discrete components. The company's long-term investment in module development since 2016, including proprietary automated test and reliability systems (eMotion product), and its advanced 60nm (moving to 40nm) semiconductor technology, which increases power density, are key differentiators.

“MPS is a focused on the monolithics. And we do what is the most cost effective and we do -- and how we do the integrations. And we have the capabilities to integrate or disintegrate, okay? And the integration we can put it in our modules. And that's a huge advantage.”

asked by Tore Svanberg · answered by Michael R. Hsing

Are robotics socket opportunities incremental, and is $150 content for humanoid still relevant, or are opportunities expanding?

Robotics opportunities are varied, including battery management, compute power for GPUs, control units, sensors, and actuators. Humanoid is visible, but the focus is on remote, battery-operated robots. Dollar content is difficult to judge due to variety of applications (chip vs. module sales).

“It's a variety of applications. We sell in chip and to selling modules, okay? And so the dollar content is also different, and it's very difficult to judge.”

asked by Joseph Quatrochi · answered by Michael R. Hsing