Monolithic Power Systems (MPWR) rallies 61% as growth metrics support premium valuation

Monolithic Power Systems (NASDAQ: MPWR) shares have risen 61.1% over the six months ended May 13, 2026, reaching $1,573, supported by strong quarterly results and investor interest in its power-management chip business. The company posted a 25.9% compound annual sales growth rate over the past five years, outpacing the broader semiconductor sector. Earnings per share grew at a 27.7% annual rate over the same period, indicating that revenue gains translated into profit growth. Monolithic Power Systems’ five-year average return on invested capital was 43%, among the stronger levels in semiconductors. After the rally, the stock trades at 64.7 times forward earnings, leaving investors to weigh its high growth and profitability against a premium valuation.