$Monolithic Power(MPWR.US)

Post 3 of Episode 25

Context: What interests me about Monolithic Power Systems is that the AI power bottleneck doesn’t end when electricity reaches the data centre. As GPU clusters become increasingly power-hungry, efficiently delivering and converting that electricity inside the server rack becomes just as important. MPWR is expanding beyond traditional chip-level power management into higher-voltage solutions for next-generation AI infrastructure.

My trade: I see MPWR as an interesting way to participate in the AI buildout through power efficiency rather than computing performance. Its Enterprise Data revenue grew an impressive 164% year-on-year in Q2 2026, and its move into 800V power architectures could expand its opportunity further. The recent manufacturing partnership with GlobalFoundries also strengthens its ability to support growing demand.

Takeaway: AI doesn’t just need more electricity. It needs to use that electricity more efficiently. As computing density increases, every watt saved in power conversion becomes another watt available for productive computing. Sometimes the most valuable technology isn’t the one doing the calculations, but the one making those calculations possible.

@Captain's Treasure