Shares of chipmaker Monolithic Power Systems rise in price

During the session on November 9, Monolithic Power Systems shares gained 16.6%. The company had not released any announcements, financial reports, or exchange documents prior to this that would explain the movement. The growth followed a sell-off of technology company stocks the previous week: the Nasdaq Composite rose by 2.7%, and the S&P 500 by 2.3%.

During a conference call on October 29, management stated that corporate data would become the company's fastest-growing end market by 2026. In the third quarter, Monolithic Power Systems reported revenue of $1.2 billion, which is 63.1% higher than the previous year. One market analysis linked the dynamics to increased demand for accelerators for artificial intelligence systems and higher-value power modules. This product range ties the business to AI investment cycles, and the company expects demand from existing clients to persist until 2027.

Shares had previously declined amid doubts in the AI sector: on November 4, they lost 5.1%, and on November 5, 10.3%. The following day, the shares rose by 5.2%. On Monday, all five companies in the comparable group saw gains, but the strongest increases after Monolithic Power Systems were ON Semiconductor—up 9.2%—and Analog Devices—up 8.6%. The technology-focused XLK fund rose by 3.7%.

The movement was the strongest for Monolithic Power Systems shares in the past 365 days—in both directions. Over the past 12 months, the shares have delivered a return of 45.9% compared to 13.7% for the S&P 500, but over the last six months, they have declined by 16.2%, while the index rose by 2.4%. The company expects to present its fourth-quarter 2026 results in February 2027.