Monolithic Power Systems pares losses as analysts defend amid report

Monolithic Power Systems (NASDAQ:MPWR) pared some of its losses on Monday after several Wall Street firms defended the company following a report from Edgewater Research that said it may have lost share in Nvidia’s (NASDAQ:NVDA) Blackwell line of GPUs to Renesas and Infineon.

Shares were recently down 15.7%, shortly before the close of trading. They had been down as much as 20% earlier in the session.

Oppenheimer analyst Rick Schafer reiterated his Outperform rating and $900 price target and said that he has not seen any design or performance issues with Monolithic’s AI accelerator power solutions and that Nvidia has not canceled any orders with the company.

The “flattening” of Monolithic’s AI segment in the second-half of the year is likely due to pull-in from Nvidia ahead of the Blackwell launch, and there should be a re-acceleration in the segment early next year, he added.

“In the absence of evidence to the contrary, we expect MPS to retain dominant AI accelerator power share and increase content across leading AI platforms (NVDA, AMD, GOOG, AWS, META, and MSFT) in 2025,” Schafer wrote, adding that Monolithic should retain “dominant” stage 2 share in the upcoming Blackwell SKUs.

Wolfe Research also defended the company and said that the report from Edgewater seemed to imply that Monolithic would see “limited” or no allocation to Nvidia’s B200 and GB200 GPUs. However, Wolfe said Monolithic management has not indicated it is aware of any technical issues that would prevent it from being on the Blackwell platform.

Rosenblatt Securities also said that senior management and product line management at Monolithic are not aware of any technical issues with Blackwell sockets.

Monolithic has not yet responded to multiple requests for comment from Seeking Alpha.