Monolithic Power Systems (MPWR, Financials) stock prices rose on the market on Monday following an Edgewater Research report showing potential risk to the company’s allocation to NVIDIA’s (NVDA, Financials) Blackwell GPU products. It fell by double digits in the previous session.
Edgewater analysts said Monolithic’s allocation to Blackwell could be significantly limited or eliminated due to performance issues with its voltage regulation modules and power management integrated circuits. Japanese semiconductor company Renesas and Germany’s Infineon Technologies could absorb Monolithic’s share, given that both businesses have received recent rush orders. It is reported that Renesas may take over the B200 allocation and Infineon may manage the GB200.
A product failure in Blackwell’s setup, where power usage exceeded 700 watts, could be the culprit, but Edgewater experts noted that the cause of the issue with Monolithic’s power management IC is “unknown.” . Monolithic may keep shipping the B300A (700 watts), but due to this performance issue, Monolithic has “limited or no” allocations to the B200 (1,000 watts) and GB200 (1,200 watts). state.
Analysts also say that NVIDIA is probably looking at Monolithic firm orders for next quarter, but has already canceled about half of Monolithic’s backlog, impacting all unconfirmed orders. said. By early 2025, Nvidia could increase its allocation of Hopper GPUs to Renesas to 50% from about 15% in Q4 2024, the company said. However, Infineon has not yet qualified as a supplier to Hopper.
Edgewater claims that while Monolithic’s latest solution is just a short-term patch rather than a long-term solution, Nvidia’s engineering staff clearly has confidence in Renesas and Infineon as key suppliers. There is.
We view this to pose significant downside risks to MPWR’s enterprise data sector in 2025, the analysts conclude, especially as investors focus on the company’s AI performance. He highlighted the issue of potential impacts.
This article first appeared on GuruFocus.
