Monolithic Power Systems Rallies on GlobalFoundries Deal
Monolithic Power Systems shares jumped 8.27% after announcing a manufacturing pact with GlobalFoundries and receiving a Buy rating from StoneX.
Key points
- Monolithic Power Systems shares rose 8.27% to near $1,383 on Tuesday, September 22, 2026.
- A new manufacturing deal with GlobalFoundries will add capacity in Singapore starting in early 2027.
- StoneX initiated coverage with a Buy rating and a $1,800 price target, citing AI power demand.
Monolithic Power Systems shares climbed 8.27% on Tuesday, September 22, 2026, closing near $1,383. The surge followed the announcement of a long-term manufacturing agreement with GlobalFoundries and the initiation of coverage by StoneX, which assigned a Buy rating.
The company reported annual revenue of approximately $2.79 billion, supported by gross margins exceeding 55% and net margins around 25%. With return on equity above 30% and no long-term debt, Monolithic Power Systems maintains a strong balance sheet despite a valuation with a price-to-earnings ratio above 74.
GlobalFoundries Pact Secures Future Capacity
Monolithic Power Systems signed a deal to deploy its proprietary power-management technology at GlobalFoundries' 300mm facility in Singapore. Production capacity from this agreement is scheduled to ramp up in early 2027, targeting automotive, industrial automation, and AI data center markets.
This agreement addresses potential supply constraints in high-growth segments. By securing access to critical manufacturing nodes, the company mitigates the risk that demand for power management chips will outpace available supply in the coming years.
StoneX Highlights AI Power Demand
StoneX initiated coverage on Monolithic Power Systems with a Buy rating and a price target of $1,800. The firm cited the company's lean expense structure and best-in-class margins as key drivers, emphasizing its positioning in power management for AI accelerators.
According to StocksToTrade, analysts view the AI power-hunger theme as a long-term tailwind. Monolithic Power Systems is positioned to benefit directly from the increasing power requirements of next-generation computing infrastructure.
Dividend Maintained Amid Stock Gains
The company maintained its third-quarter 2026 dividend at $2.00 per share. Payment is scheduled for October 15, 2026, to holders of record as of September 30, 2026. This steady capital return reinforces confidence in the firm's cash generation capabilities.
