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• In early February 2026, Monolithic Power Systems reported past fourth-quarter and 2025 results with higher sales year on year, issued first-quarter 2026 revenue guidance of US$770.0 million to US$790.0 million, announced a quarterly dividend increase from US$1.56 to US$2.00 per share, and outlined the planned retirement of long-serving CFO Bernie Blegen, with Corporate Controller Rob Dean to become interim CFO.

• An interesting angle for investors is how the company is pairing a sizable dividend boost and above-consensus revenue outlook with a carefully managed finance leadership transition designed to maintain continuity.

• With this backdrop, we’ll examine how the combination of stronger-than-expected revenue guidance and a higher dividend shapes Monolithic Power Systems’ investment narrative.

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To own Monolithic Power Systems today, you need to be comfortable paying a rich multiple for a company that is leaning into growth, capital returns and a complex end-market mix. The latest quarter reinforced that picture: revenue continued to rise year on year, Q1 2026 guidance of US$770.0 million to US$790.0 million came in above prior expectations, and the dividend was lifted to US$2.00 per share, even as earnings over the past year were lower than the prior period and net margins compressed. Those moves, together with a share price that has already run hard, keep execution risk and valuation front and center over the short term. The planned CFO transition, with a long-tenured insider stepping in as interim, appears designed to limit disruption rather than change the thesis in a material way.

However, investors should be aware that paying up for strong guidance does not remove valuation and execution risk. Monolithic Power Systems’ shares are on the way up, but could they be overextended? Uncover how much higher they are than fair value.

Twelve Simply Wall St Community fair values span roughly US$428 to about US$1,198 per share, underlining how far apart private investors can be on MPWR. Set against rich current multiples and a higher dividend commitment, that spread invites you to weigh differing views on how much growth and margin resilience the business can realistically deliver.

Explore 12 other fair value estimates on Monolithic Power Systems – why the stock might be worth as much as $1198!

Disagree with this assessment? Create your own narrative in under 3 minutes – extraordinary investment returns rarely come from following the herd.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include MPWR.

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