Munger Mode rating: 3 out of 5 — Hold. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
A wonderful business at a decidedly un-wonderful price. We admire nearly everything about this company except what the market is asking us to pay for it. Warren here, with Charlie's ghost keeping me honest at my shoulder. Monolithic Power Systems is one of the finest engineering franchises we have examined in the semiconductor industry: founder-led for twenty-nine years, debt-free since inception, gross margins parked at 55% through two full industry cycles, and revenue that has compounded at roughly 24% a year for a decade. The second quarter of 2026 was the best in the company's history — revenue of $980.6 million, up 47.6% year over year, with GAAP operating margin expanding to 31.0%. And yet we arrive at a Hold. At roughly 80 times trailing GAAP earnings and about 50 times this year's expected earnings, the market has already paid Mr.
Recent filings analysed: 10-Q (2026-08-05), 8-K (2026-07-30), 8-K (2026-06-12), 10-Q (2026-05-04).
Stock screener · Superinvestor 13F holdings · Analyst sentiment · Market valuation