MPWR tops $1 billion in revenue as data-center demand accelerates

Transcript intelligence

What changed

MPWR moved from a record $981 million of Q2 revenue to $1.2 billion in Q3, raised its enterprise-data growth floor from 130% to 150% year over year, and shifted its capacity outlook toward $8 billion by late 2027 and $10 billion thereafter. The quarter also added first 48-volt automotive orders, 800-volt GaN sampling, a large data-converter win, and more than $450 million of stock repurchases.

Guidance delta

Management's guidance sentiment was raised, including a higher enterprise-data growth floor of 150% year over year and capacity targets of $8 billion by late 2027 and $10 billion thereafter.

Key takeaways

• Q3 revenue reached $1.2 billion, the company's first quarter above $1 billion, supported by enterprise data and AI workload demand.
• Management raised the enterprise-data growth floor to 150% year over year and described capacity expansion toward $8 billion by late 2027.
• New growth initiatives include 48-volt automotive solutions, 800-volt GaN data-center modules, high-speed memory, data converters, and robotics.
• The company repurchased more than $450 million of stock in Q3 while targeting modest quarterly gross- and operating-margin expansion.

Management priorities

• Expand capacity toward $8 billion by late 2027 and eventually $10 billion.
• Scale 48-volt automotive power solutions and zonal architectures.
• Develop 800-volt GaN data-center and industrial modules for planned 2027-2028 commercialization.
• Increase presence in high-speed memory, DDR5, data converters, robotics, and motor-control products.
• Maintain disciplined capital allocation and continue stock repurchases.