Monolithic Power crosses $1 billion in quarterly revenue as AI data center demand surges

The power management chip designer's $1.202 billion quarterly revenue marks a significant milestone, representing a 63.1% increase from Q3 2025 and a 22.6% jump from the previous quarter. This surge reflects the growing demand for chips that power high-performance computing and enterprise data systems.

Enterprise Data Segment

The company's Enterprise Data segment was the primary growth driver, generating $506.7 million in revenue. This represents a 164.6% year-over-year increase and a 33.2% rise from the previous quarter. The segment now accounts for 42.1% of total revenue, nearly half the company's business.

Financial Performance

Monolithic Power's profitability kept pace with revenue growth. GAAP net income reached $271.1 million, or $5.51 per diluted share. On an adjusted basis, diluted earnings per share came in at $8.19. Through the first nine months of 2026, revenue totaled $2.987 billion, a 46.5% increase from the same period in 2025.

Future Outlook

The company isn't forecasting a slowdown, guiding Q4 2026 revenue between $1.315 billion and $1.385 billion. Monolithic Power expects its Enterprise Data segment to grow at least 150% year-over-year. The company is expanding capacity to support more than $6 billion in annual revenue currently, with targets of $8 billion by mid-2027 and $10 billion long-term.

AI Infrastructure Indicator

Monolithic Power's results serve as a barometer for AI infrastructure spending. As AI workloads become more demanding, efficient power delivery has become critical for data center operators. The company's position in this bottleneck has reshaped its revenue mix significantly in just one year.