Monolithic Power Systems (MPWR) experienced a significant pre-market surge of 5.71% on Friday, driven by a wave of positive analyst sentiment and the release of strong fourth-quarter 2025 financial results.

The price movement follows multiple analyst firms raising their price targets on the stock. TD Cowen, Citigroup, Wolfe Research, Wells Fargo, Truist Securities, and Raymond James were among the firms that increased their targets, reflecting confidence in the company's growth trajectory. The upgrades came after the company published the transcript of its Q4 2025 earnings conference call.

During the call, management highlighted record module revenue and a strategic transition to solutions-based offerings. Key announcements included the sampling of an 800-volt power solution for data centers and the launch of new automotive solutions for 48-volt and zonal architectures. The company also reported expanding its customer base in the data center segment, focusing on power solutions for AI, servers, and other applications. Financially, Monolithic Power announced a 28% increase in its quarterly dividend to $2 per share and noted it had returned over 72% of its free cash flow to shareholders over the past three years through buybacks and dividends, signaling strong financial health and shareholder commitment.