New York, January 24, 2026, 19:37 (EST) — Market closed
- MPWR ended its eight-day winning streak with a pullback on Friday
- Investor nerves on chips spiked following Intel’s forecast
- Fed’s upcoming decision and major tech earnings set the stage ahead of MPWR’s February 5 report
Monolithic Power Systems Inc shares dipped 1.2% on Friday, closing at $1,063.74 and snapping an eight-day winning streak as the chip sector cooled off late in the week. The stock ended roughly 5.3% below its 52-week peak of $1,123.38, reached on Oct. 29. Texas Instruments slipped 0.9%, Analog Devices fell 1.0%, and NXP Semiconductors dropped 1.8%.
Semiconductors took a hit after Intel plunged 17% on a gloomy forecast, flagging struggles to keep up with demand for certain AI data center server chips. The Dow slipped 0.58%, the S&P 500 barely moved, and the Nasdaq rose. “We’re feeling pretty good, but mindful” of more “twists and turns,” said Jason Blackwell, chief investment strategist at Focus Partners Wealth. Janus Henderson’s Julian McManus described this as a “show-me” phase for AI-related stocks. Reuters
The coming sessions will put the AI trade under serious scrutiny, with earnings reports from top U.S. tech giants and a Federal Reserve policy decision set for Wednesday. The S&P 500 trades above 22 times expected earnings, meaning the results “had better be met,” warned Franklin Templeton strategist Chris Galipeau. PNC’s Yung-Yu Ma noted investors are looking for proof that AI goes beyond just “building and infrastructure.” Reuters
Monolithic Power is set to release its fourth-quarter and full-year 2025 results on Feb. 5. The company’s investor relations calendar shows the event will start at 2 p.m. PT.
The company, which sells power-control products and other semiconductors, ties its demand to data-center growth fueled by the AI surge. Nvidia is listed as one of its customers, according to Reuters.
With the market shut over the weekend, Monday’s open hinges on whether Friday’s sell-off sparks wider profit-taking or just marks a brief pause after a sustained rally. MPWR’s been acting like a sentiment barometer: steady when AI hype persists, skittish when guidance from larger players rattles nerves.
Investors are keenly watching megacap tech earnings for clues on data-center capital spending. If cloud and platform giants express caution, smaller suppliers usually feel the impact swiftly, often ahead of their own earnings reports.
That said, the situation is double-edged. Should the Fed take a tougher stance—hinting at prolonged rate hikes—or if tech giants fall short on AI-driven revenue expectations, high-multiple semiconductor stocks could see rapid repricing.
On the upside, solid earnings from big tech and more stable rate outlooks could lure buyers back into the chip sector, particularly those linked to power delivery in data centers. MPWR operates in this niche, and traders are likely to read any change in sentiment as a key indicator.
The next big market moves hinge on Wednesday’s Fed statement and the upcoming rush of megacap tech earnings. For MPWR investors, the key date is Feb. 5, when the company reports and traders scrutinize its demand forecast across data centers, autos, and industrial sectors.
Related articles: NASDAQ:MPWR
