Recently, Edgewater Research suggested that Monolithic Power Systems (MPWR, Financial) might face issues with its products related to Nvidia's Blackwell graphics card, potentially losing its supply contract. This led to a significant stock drop of nearly 25%. However, Rosenblatt analyst Hans Mosesmann countered these claims, arguing there are no technical issues. If there were, Nvidia would have informed Monolithic Power. Despite possible reduced participation in Blackwell chips, MPWR is expected to remain a primary supplier and sustain significant market share, thus the stock's decline was partially reversed.
Edgewater Research issued a notice expressing concerns that MPWR's voltage regulation modules/power management chips for Nvidia's Blackwell might be flawed, risking their supply role. They speculated that Renesas (6701) might take over the B200 project and Infineon the GB200 project due to recent order activities from both companies. Reports even suggested Nvidia canceled MPWR's unconfirmed orders, causing a sharp market drop.
Hans Mosesmann from Rosenblatt defended MPWR, stating the management was unaware of any product issues. He highlighted that Nvidia desires a diversified supplier base, which might reduce MPWR's share in Blackwell. Nonetheless, MPWR is still positioned as a major supplier and could potentially gain more market share than its competitors.
