Monolithic Power insiders sold $680 million of stock into the AI power rally
A foundry deal with undisclosed terms promises Singapore capacity in 2027, and the stock closed at $1,380.62 after an 8% day. The SEC record shows the people running Monolithic Power spent that year selling the stock, not buying it.
Vincent Jiang · 3 min read
The rally rests on a deal with no price tag
Monolithic Power Systems closed at $1,380.62 on 22 September, up about 8% on the day, riding a semiconductor rally lit by a $2,400 target on SanDisk 18. The stock still sits roughly 20% below its $1,714.09 high 1. What the move rests on was signed on 9 September: a long-term agreement putting MPS's proprietary process on GlobalFoundries' 300mm line in Singapore, with added capacity from early 2027 for automotive, robotics and smart power stages for AI and cloud infrastructure 34. The financial terms were not disclosed 3. The only 8-K MPS filed that month was a $2.00 dividend notice 910.
The bottleneck management named is not the one this deal fixes
On the July earnings call, per TIKR's report, founder-CEO Michael Hsing called module assembly "more difficult," a "3D effect," "more complicated than you assemble a phone even" 1. MPS no longer sells just chips; it sells encapsulated modules that fuse silicon, inductors and capacitors, and that back-end work is the constraint its own management keeps naming 1. Singapore adds wafers, the easier half of the problem.
The AI line nearly tripled, and the multiple tripled with it
AI power nearly tripled one MPS line in five quarters
- Enterprise Data
- All other end markets
Data
| Enterprise Data | All other end markets | |
|---|---|---|
| Q3 2024 | $184.5M | $435.6M |
| Q4 2024 | $194.9M | $426.8M |
| Q1 2025 | $132.9M | $504.7M |
| Q2 2025 | $144M | $520.6M |
| Q3 2025 | $191.5M | $545.7M |
| Q4 2025 | $233.5M | $517.7M |
| Q1 2026 | $262.8M | $541.4M |
| Q2 2026 | $380.6M | $600M |
Enterprise Data, the AI-server segment, went from $132.9 million in Q1 2025 to $380.6 million in Q2 2026, up 164% year over year, 38.8% of record quarterly revenue of $980.6 million 2. The Q3 guide runs $1,140 million to $1,160 million 2. On the four quarters MPS has filed, the marginal buyer at the 22 September close paid roughly 85 times trailing GAAP earnings, about 65 times non-GAAP 1267. TIKR puts the semiconductor peer median near 17 times 1.
The 22 September close priced MPWR near five times the peer median
Data
| Value | |
|---|---|
| MPWR, GAAP | 85x |
| MPWR, non-GAAP | 65x |
| Semiconductor peer median | 17x |
Nobody inside bought
Six insiders sold $674 million of stock in a year, and none bought
Data
| Value | |
|---|---|
| Michael Hsing, CEO | $275.8M |
| Saria Tseng, General Counsel | $164.2M |
| Maurice Sciammas, EVP Sales | $101.1M |
| Deming Xiao, EVP Operations | $76.4M |
| Ted Blegen, CFO | $37.5M |
| Eugen Elmiger, Director | $19M |
The Form 4 record shows no insider purchases in the trailing year and roughly $680 million of sales 5; TIKR, citing GuruFocus, counts $723 million 1. Hsing alone accounts for about $276 million 5. Deming Xiao, the operations chief quoted in the foundry announcement, sold $49.6 million in May and $26.8 million in February, about $76 million in all 35.
The bull case has receipts too
Orders outpace shipments and channel inventory stays low, per TIKR's account of the call, and Hsing says the AI segment has "no concentrated customers" 1. MPS extended its capacity goal "significantly beyond $6 billion," every end market grew sequentially in Q2, gross margin held at 55.2%, and the board added $500 million to a now $1 billion buyback 2. Supply is not the dispute. The dispute is what 85 times earnings obliges the order book to deliver.
October is the audit
Q3 lands in late October against a $1,150 million midpoint, 56% above Q3 2025 27. If Enterprise Data holds its pace, the run looks earned; a first plateau and the premium becomes the story 1. The Singapore line does not ship until 2027 3. Foundry deals fix supply. The order book defends the multiple.
How this brief was made
01Gathered & sourced193 channels · 1,893 articles▾
Agents swept 193 channels and ingested 1,893 articles, then de-duplicated and ranked them for signal.
02Verified & cross-validated10 claims · 16 data feeds▾
Every one of 10 load-bearing claims was checked against primary sources, with 16 live data feeds reconciling the figures and charts.
- 1TIKR.com, "Monolithic Power Stock Jumped 8% to $1,380.62. Its Foundry Deal Is Why the Run Could Hold", 23 September 2026
- 2Monolithic Power Systems, Q2 2026 earnings commentary, Exhibit 99.1 to Form 8-K filed 30 July 2026 (SEC EDGAR)
- 3GlobalFoundries and Monolithic Power Systems joint press release via Design & Reuse, 9 September 2026
- 4GlobalFoundries Newsroom, "GlobalFoundries and Monolithic Power Systems form manufacturing partnership", 9 September 2026
- 5OpenInsider, MPWR SEC Form 4 insider trading screener, accessed 26 September 2026
- 6Monolithic Power Systems, Q4 and FY2025 results press release, Exhibit 99.1 to Form 8-K filed 5 February 2026 (SEC EDGAR)
- 7Monolithic Power Systems, Q3 2025 results press release, Exhibit 99.1 to Form 8-K filed 30 October 2025 (SEC EDGAR)
- 8Misty, "Semiconductor & High-Tech Gainers and Losers Pickup, Tuesday, September 22, 2026", note.com, 22 September 2026
- 9SEC EDGAR, Monolithic Power Systems 8-K filing history, accessed 26 September 2026
- 10Monolithic Power Systems, third-quarter 2026 dividend press release, Exhibit 99.1 to Form 8-K filed 10 September 2026 (SEC EDGAR)
03Reviewed & edited1 human editor▾
One editor read the draft against the evidence, tuned the framing, and signed off before it shipped.
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