Monolithic Power Systems Inc. (MPWR) saw its stock surge 10.46% on Thursday after reporting strong fourth-quarter 2024 results and providing an upbeat revenue forecast for the first quarter of 2025, driven by robust demand from the AI and data center markets.

For the fourth quarter ended December 31, 2024, the power management chipmaker reported revenue of $621.7 million, up 36.9% year-over-year and beating analyst estimates of $608.1 million. Adjusted earnings per share came in at $4.09, surpassing expectations of $3.98.

The solid performance was fueled by strong growth across multiple segments, particularly in Enterprise Data, where revenue surged 51.2% year-over-year to $194.9 million, driven by increasing demand for power solutions for AI and server applications. The Automotive segment also saw substantial growth, with revenue rising 43% year-over-year to $128.4 million.

Looking ahead, Monolithic Power Systems provided an encouraging outlook for the first quarter of 2025, forecasting revenue in the range of $610 million to $630 million, which exceeded analyst estimates of $578.1 million. The company cited continued strong demand for its power control products as generative AI drives data center expansion, with Monolithic Power remaining a key supplier to industry leaders like Nvidia.

In addition to the strong financial results and guidance, Monolithic Power Systems announced a 25% increase in its quarterly dividend to $1.56 per share and a new $500 million stock repurchase program over the next three years.