Overview

A class action lawsuit has been filed against Monolithic Power Systems, Inc. (“Monolithic” or the “Company”) and certain of the Company’s current senior executive officers alleging violations of the federal securities laws.  Monolithic common stock is listed on the NASDAQ Global Select Market under the ticker symbol “MPWR.”

The Monolithic class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired publicly traded Monolithic common stock between February 8, 2024, and November 8, 2024, both dates inclusive (the “Class Period”).  Investors have until April 7, 2025, to seek appointment as lead plaintiff in the Monolithic class action lawsuit.

Monolithic is a leading provider of power management components, primarily used in artificial intelligence (“AI”) data centers.  Its products convert voltages to the appropriate wattage for electronic systems, playing a crucial role in powering graphics processing unit (“GPU”), particularly those produced by Nvidia, the Company’s largest customer.  Amid soaring demand for AI infrastructure, Monolithic benefitted from the widespread adoption of its power modules, particularly in Nvidia’s Hopper GPUs.  By the end of 2023, its Enterprise Data segment, which includes AI-related sales, had grown rapidly, representing nearly 28% of the Company’s total revenue.  Throughout the Class Period, Monolithic executives emphasized the superior performance and reliability of their products, attributing the Company’s strong financial results to its innovative solutions and dominant market position.

During this time, Monolithic reassured investors that its products met high-quality standards and that demand remained strong.  The Company reported record revenue, reaching $507 million in second fiscal quarter of 2024, with AI-related sales growing by 290% year-over-year.  Analysts praised Monolithic’s success, with some calling the Company a “beacon on a hill” compared to its competitors.  However, unknown to investors, Monolithic’s power modules were experiencing significant performance and quality issues, negatively affecting Nvidia’s GPUs.  Despite Monolithic’s claims of resolving these issues, the Company failed to correct persistent defects, jeopardizing its relationship with Nvidia and exposing itself to severe undisclosed financial and reputational risks.

The problems became apparent on October 30, 2024, when Monolithic reported a surprising slowdown in its Enterprise Data segment.  Revenue for this segment declined sequentially to $184 million, missing analyst estimates by 13%.  Executives attributed this shortfall to unexpected changes in customer order patterns, but analysts linked it to delays in Nvidia’s Blackwell GPU launch.  The true extent of Monolithic’s troubles was revealed on November 11, 2024, when Edgewater Research reported that Nvidia had canceled half of its outstanding orders with Monolithic and planned to remove the Company as a supplier for its most advanced Blackwell GPU variants due to ongoing performance issues.

These revelations caused Monolithic’s stock price to plummet by over 30%, falling from a high of $959 per share to approximately $647 per share by the end of the Class Period.  Investors, unaware of the Company’s undisclosed product issues, suffered significant financial losses.  The lawsuit alleges that Monolithic misled investors by falsely claiming that its products were superior and failing to disclose the deteriorating relationship with Nvidia.  As a result, investors were left exposed to material risks that had been deliberately concealed, leading to substantial damages under federal securities laws.

The Monolithic class action alleges that Defendants, throughout the Class Period, made false and/or misleading statements and/or failed to disclose that: (1) Monolithic’s voltage regulator modules and power management integrated circuits were suffering from significant performance and quality control issues; (2) these defects had, in turn, negatively impacted the performance of certain products offered by Nvidia in which such products were used; (3) Monolithic had failed to adequately address and resolve known issues affecting the performance of the power management solutions Monolithic supplied to Nvidia; (4) Monolithic’s relationship with Nvidia had been irreparably damaged due to the significant performance and quality control problems affecting the products it supplied to Nvidia and Monolithic’s failure to adequately address such issues; and (5) as a result of the above, Monolithic was acutely exposed to material undisclosed risks of significant business, financial, and reputational harm.

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If you purchased or otherwise acquired publicly traded Monolithic common stock between February 8, 2024, and November 8, 2024, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected]. 

The deadline to apply to the Court to serve as lead plaintiff in the Monolithic class action lawsuit is April 7, 2025.