ADI vs MPWR: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: ADI is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. ADI and MPWR share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined ADI and MPWR exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Analog Devices designs, manufactures, and markets integrated circuits, software, and subsystem products that convert real-world analog signals into digital data and back again. Its core product families include data converters, amplifiers, power management ICs, radio frequency and microwave chips, and MEMS-based sensors such as accelerometers and gyroscopes. ADI sells into four end markets: Industrial (the largest, roughly half of revenue), Automotive, Communications, and Consumer. Revenue is generated primarily through direct sales to original equipment manufacturers and through a global distribution network spanning North and South America, Europe, Japan, China, and the rest of Asia. The company's hybrid manufacturing model combines owned fabs with foundry partnerships, giving it flexibility in capacity and cost management.

Full ADI guide

Monolithic Power Systems is a Kirkland, Washington based fabless semiconductor company that designs power-management and analog integrated circuits. Its proprietary BCD (bipolar-CMOS-DMOS) process integrates analog, digital, and memory functions onto a single chip, which lets it build compact, high-efficiency power modules used across enterprise data and AI servers, automotive, computing and storage, communications, industrial, and consumer end markets. The company outsources manufacturing and focuses on design, and its integrated power modules have become a reference standard as AI GPU clusters push toward extreme power densities.

Full MPWR guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• ADI drivers: Industrial Automation and the Intelligent Edge; AI Infrastructure and Automated Test Equipment.
• MPWR drivers: AI data-center power demand; Diversified end markets.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Analog semiconductors are cyclical, and a slowdown in industrial capital spending or a prolonged pause in automotive orders can deflate revenue quickly, as seen during the fiscal 2024 trough. For MPWR, the most visible risk is valuation: a market cap near $70 billion on roughly $2.9 billion of trailing revenue leaves little margin for error, so any growth disappointment can trigger sharp drawdowns.

Pick ADI if you believe its drivers more; MPWR if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the ADI and MPWR guides.

ADI. ADI's trailing P/E of roughly 60 to 70x is above its own 10-year historical average of approximately 38x, reflecting the market's pricing of a sustained earnings recovery and secular growth from industrial automation and AI infrastructure. The forward P/E of approximately 32x is more moderate and assumes continued double-digit earnings growth into fiscal 2026. Free cash flow conversion at 39% of revenue is well above the semiconductor sector average, providing a tangible foundation for the valuation premium, though it does not eliminate the risk of multiple compression if growth expectations are not met.

MPWR. MPWR trades at a steep premium to the broader semiconductor group, reflecting its growth rate and AI exposure rather than current earnings. Gross margin has held near 55 percent, and the balance sheet is largely debt-free. The gap between the trailing multiple near 100x and the forward multiple near 50x underscores how much future earnings growth is embedded in the price.

Headline figures (approximate, June 27, 2026 (based on fiscal year 2025 results reported November 25, 2025, and fiscal Q1 2026 results reported February 18, 2026)): ADI shows revenue (fiscal year 2025) ~$11.0 billion, revenue (fiscal q1 2026) ~$3.16 billion, free cash flow (fiscal year 2025) ~$4.3 billion (~39% of revenue), gross margin (ttm) ~62% to 63%; MPWR shows revenue (ttm) ~$2.9B, fy2025 revenue ~$2.79B (+26% YoY), q1 2026 revenue ~$804M (+26% YoY, record), market cap ~$70B.

ADI and MPWR are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined ADI and MPWR exposure against your real portfolio. It is not an investment adviser.