---
title: "Monolithic Power is 32% below its high before October 29 earnings, with a fraud suit and Vicor's import bid"
description: "The AI power-chip maker reports October 29 with a securities-fraud suit a federal judge has twice refused to dismiss and an ITC probe seeking to bar its AI-server power modules from US import. Consensus still expects its data-center segment to more than double."
publisher: "The Inference"
section: "Chips"
published: 2026-10-27T14:18:03.221Z
modified: 2026-10-27T14:18:03.221Z
canonical: https://theinference.org/article/monolithic-power-is-32-below-its-high-before-october-29-earnings-with-a-fraud-suit-and-vicor-s-import-bid
language: en
keywords: "Chips, Semiconductors, AI Data Centers, Patent Dispute, Securities Litigation"
---

# Monolithic Power is 32% below its high before October 29 earnings, with a fraud suit and Vicor's import bid

> The AI power-chip maker reports October 29 with a securities-fraud suit a federal judge has twice refused to dismiss and an ITC probe seeking to bar its AI-server power modules from US import. Consensus still expects its data-center segment to more than double.

[Monolithic Power Systems](https://theinference.org/markets/companies/monolithic-power-systems), the Kirkland, Washington chipmaker whose power modules feed AI data centers, opened Tuesday at $1,167.27, 32% below its 52-week high of $1,714.09 [1]. Third-quarter results land after the close on Thursday, October 29, and [consensus expects $1.16 billion of revenue](https://ca.finance.yahoo.com/news/healthy-top-line-growth-benefit-150700717.html), up 57% from $737.2 million a year ago [2]. On [Reddit](https://theinference.org/markets/companies/reddit)'s ValueInvesting forum, one holder wrote: "Almost feels like they are preparing to deliver a negative earnings report so this pre fall softens the blow on what is to come" [3].

## The fraud suit a federal judge won't kill

The suit, which names the company, its chief executive and its former chief financial officer, alleges Monolithic Power misled investors from February to November 2024 about the quality of its power-management chips and its key customer [Nvidia](https://theinference.org/markets/companies/nvidia), while insiders sold more than $160 million of stock [4].

On May 6, US District Judge James L [4]. Robart held that the complaint sufficiently alleged intent to deceive or deliberate recklessness; on October 22 he again refused to dismiss it [4]. A day later Schubert Jonckheer & Kolbe [renewed its investor notice](https://www.classactionlawyers.com/blog/monolithicreminder), and by Monday, October 26, Rosen Law Firm had [opened a fiduciary-duty probe of the board](https://www.businesswire.com/news/home/20261026235789/en/Monolithic-Power-Investor-News-Rosen-Law-Firm-Announces-Investigation-of-Breaches-of-Fiduciary-Duties-by-the-Directors-and-Officers-of-Monolithic-Power-Systems-Inc.-MPWR) [4][5].

## Vicor wants the modules stopped at the border

The second front aims at the same franchise. [Vicor](https://theinference.org/markets/companies/vicor), the Andover, Massachusetts power-module maker, filed a section 337 complaint on September 9 claiming that vertical power delivery systems imported for AI accelerators infringe its US Patent 10,903,734, and asked the US International Trade Commission for a limited exclusion order, which bars the accused products from import [6].

The Commission [instituted the investigation](https://www.federalregister.gov/documents/2026/10/14/2026-20993/certain-vertical-power-delivery-systems-components-thereof-and-computing-systems-containing-the-same) on October 9, naming Monolithic Power and its Chengdu and Shanghai affiliates among 20 respondents across nine groups, alongside [Foxconn](https://theinference.org/markets/companies/foxconn-hon-hai-precision-industry), Quanta and [Flex](https://theinference.org/markets/companies/flex), [as The Inference covered when the complaint landed](https://theinference.org/article/vicor-asked-the-itc-to-bar-monolithic-power-s-ai-server-power-modules-mpwr-reports-october-29) [6][7]. Institution is not a finding of violation, and respondents that do not answer within 20 days of service risk the allegations being taken as true [6].

Vicor is monetizing the patents fast: [royalty revenue hit $66.6 million last quarter](https://markets.businessinsider.com/news/stocks/vicor-corporation-reports-results-for-the-third-quarter-ended-september-30-2026-1036643181), roughly triple the $21.7 million a year earlier, two hyperscalers have sought license terms, and chief executive [Patrizio Vinciarelli](https://theinference.org/markets/people/patrizio-vinciarelli) says the probe is "prompting inquiries about licenses" [8][9].

## What the bulls are standing on

The bull case is not imaginary. Second-quarter revenue was $980.64 million, up 47.6%, and earnings of $6.50 a share beat estimates by $0.63 [1]. Revenue has doubled since 2023 and is still accelerating [10]. Thirteen analysts rate the stock a Buy, three a Hold, and the average target of $1,692.64 sits 45% above Tuesday's open [1].

*Chart: **Quarterly revenue has doubled since 2023 and the climb keeps steepening** Line chart of Monolithic Power Systems quarterly revenue from Q3 2023 to Q2 2026, rising from about $475 million to $980.64 million with the steepest gain in the final quarter.*

*Reported quarterly revenue in USD millions from Monolithic Power's SEC filings; Q3 2026, due October 29, is not yet reported. [10]*

Part of the fall was sector-wide. On October 22, the day the ruling landed, MPWR dropped 8.3% in a semiconductor rout after equipment maker [Lam Research](https://theinference.org/markets/companies/lam-research) warned that parts shortages and cleanroom constraints would cap output into 2027; [AMD](https://theinference.org/markets/companies/amd) fell 7.7% and MACOM 13.9% [11]. Recent insider selling is a rounding error against the class period: 130 shares worth $175,397 in 90 days [1].

## Thursday's number picks the story

The tell is one line: Enterprise Data, the segment selling power modules into AI data centers. Consensus has it at $457.36 million against $191.48 million a year ago [2]. Clear that number and the drawdown reads as sector beta plus legal risk on a franchise still doubling. Miss it and the plaintiffs' map, an Nvidia socket lost to rivals, becomes the better guide, with Vicor's import-bar request still live behind it.

*Chart: **Consensus has Enterprise Data more than doubling; consumer is the only line shrinking** Range chart of Monolithic Power's six segments from Q3 2025 actual to Q3 2026 consensus; Enterprise Data jumps from $191.48 million to $457.36 million while consumer declines.*

*Zacks consensus estimates for Q3 2026 vs reported Q3 2025, in USD millions; results land after the close on October 29. [2]*

The socket claim is alleged, not established, and Thursday after the close is the first hard count. Clear $457 million and the lawsuits are an overhang. Miss it and they are a map.

## Takeaway

Thursday's Enterprise Data print decides whether Monolithic Power's 32% drawdown is legal overhang on a franchise still doubling, or the first hard confirmation of the plaintiffs' map.

## Sources

1. [MarketBeat, "1,147 Monolithic Power Systems, Inc. $MPWR Shares Sold by Brookstone Capital Management," 27 October 2026](https://www.marketbeat.com/instant-alerts/filing-1147-monolithic-power-systems-inc-mpwr-shares-sold-by-brookstone-capital-management-2026-10-27/)
2. [Zacks Equity Research via Yahoo Finance Canada, "Can Healthy Top-Line Growth Benefit Monolithic Power's Q3 Earnings?", 26 October 2026](https://ca.finance.yahoo.com/news/healthy-top-line-growth-benefit-150700717.html)
3. [r/ValueInvesting (Reddit), "What is going on with Monolithic Power Systems - MPWR," 26 October 2026](https://old.reddit.com/r/ValueInvesting/comments/1xfquce/what_is_going_on_with_monolithic_power_systems/)
4. [Schubert Jonckheer & Kolbe LLP, "Monolithic Power Systems, Inc. (NASDAQ: MPWR) Investor Reminder," 23 October 2026](https://www.classactionlawyers.com/blog/monolithicreminder)
5. [Business Wire, "Rosen Law Firm Announces Investigation of Breaches of Fiduciary Duties by the Directors and Officers of Monolithic Power Systems, Inc. (MPWR)," 26 October 2026](https://www.businesswire.com/news/home/20261026235789/en/Monolithic-Power-Investor-News-Rosen-Law-Firm-Announces-Investigation-of-Breaches-of-Fiduciary-Duties-by-the-Directors-and-Officers-of-Monolithic-Power-Systems-Inc.-MPWR)
6. [Federal Register, "Certain Vertical Power Delivery Systems, Components Thereof, and Computing Systems Containing the Same; Notice of Institution of Investigation," Inv. No. 337-TA-1526, 14 October 2026](https://www.federalregister.gov/documents/2026/10/14/2026-20993/certain-vertical-power-delivery-systems-components-thereof-and-computing-systems-containing-the-same)
7. [FinanceInTime, "ITC opens patent probe of AI-server power systems, naming Foxconn, Quanta and Flex," 23 October 2026](https://financeintime.com/news/2026/10/23/itc-opens-patent-probe-of-ai-server-power-systems-naming-foxconn-quanta-and-flex)
8. [Vicor Corporation, third-quarter 2026 results press release via Markets Insider, 20 October 2026](https://markets.businessinsider.com/news/stocks/vicor-corporation-reports-results-for-the-third-quarter-ended-september-30-2026-1036643181)
9. [IAM, "Vicor royalty revenue hits $66.6 million as AI patent licensing expands," 23 October 2026](https://www.iam-media.com/article/vicor-royalty-revenue-hits-666-million-ai-patent-licensing-expands)
10. [Monolithic Power Systems, quarterly figures from its SEC filings, retrieved 27 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001280452)
11. [StockStory via The Globe and Mail, "AMD, Monolithic Power Systems, MACOM, Vishay Intertechnology, and Semtech shares plummet, what you need to know," 22 October 2026](https://www.theglobeandmail.com/investing/markets/stocks/AMD/pressreleases/8332486/amd-monolithic-power-systems-macom-vishay-intertechnology-and-semtech-shares-plummet-what-you-need-to-know/)


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Monolithic Power is 32% below its high before October 29 earnings, with a fraud suit and Vicor's import bid — The Inference. Canonical: https://theinference.org/article/monolithic-power-is-32-below-its-high-before-october-29-earnings-with-a-fraud-suit-and-vicor-s-import-bid