(Reuters) – Monolithic Power Systems forecast first-quarter revenue above estimates on Thursday, betting on strong demand for its power control products as generative AI drives data center expansion, sending its shares up more than 14% after the bell. Growing adoption of the generative artificial intelligence technology has helped drive demand for the hardware required to […]
Science
Monolithic Power forecasts Q1 revenue above estimates on AI demand, shares surge
Audio By Carbonatix
(Reuters) – Monolithic Power Systems forecast first-quarter revenue above estimates on Thursday, betting on strong demand for its power control products as generative AI drives data center expansion, sending its shares up more than 14% after the bell.
Growing adoption of the generative artificial intelligence technology has helped drive demand for the hardware required to help run advanced data centers, helping providers such as Monolithic.
The Kirkland, Washington-based company, which counts AI chip heavyweight Nvidia among its customers, forecast its first-quarter revenue to be between $610 million and $630 million. Analysts’ on average estimate $578.1 million, according to data compiled by LSEG.
Its fourth-quarter revenue stood at $621.7 million, compared with estimates of $608.1 million.
Adjusted profit was $4.09 per share, beating estimates of $3.98 per share.
The company had said in November it remains a supplier for Nvidia’s next-generation products, brushing off analyst concerns and media reports about it losing its share of power management systems to be used alongside Nvidia’s latest Blackwell chips.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shilpi Majumdar)