(Reuters) -Monolithic Power Systems forecast third-quarter revenue above estimates on Thursday, betting on strong demand for its power control products and semiconductors as generative artificial intelligence drives data center expansion.
Shares of the Kirkland, Washington-based company rose nearly 5% in trading after the bell.
The growing adoption of GenAI technology has helped drive demand for the hardware required to help run advanced data centers, helping providers such as Monolithic, which counts AI chip heavyweight Nvidia among its customers.
The company expects third-quarter sales between $710 million and $730 million, above analysts’ average estimate of $678 million, according to data compiled by LSEG.
Revenue in its enterprise data market benefited from higher sales of the company’s power management solutions for AI and server applications, Monolithic Power said in a statement.
Its second-quarter revenue stood at $664.6 million, compared with estimates of $650.8 million. Net income in the quarter was flat at $133.7 million.
The company has largely held a dominant share across multiple power management sockets for Nvidia and AMD, analysts say.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Alan Barona)
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