25 Billionaire Investors Back This Large Cap Tech Stock: Is It a Buy?

We just published the list of the 10 Best Large Cap Tech Stocks to Buy According to Billionaires and Monolithic Power Systems (MPWR) is ranked 7th on this list.

The recent selloff in technology stocks has raised questions about how much investors are willing to pay for growth, particularly as the cost of expanding AI infrastructure continues to rise. Even established technology companies have not been immune. In late October, Fortinet and ServiceNow suffered steep single-day share-price declines as investors questioned their growth prospects and the potential disruption from artificial intelligence, despite continued demand for enterprise technology. Reuters reported on October 29 that Fortinet lost 26% to a five-month low, marking the top decliner on Wall Street’s benchmark index. If you are looking for the best tech stocks to invest in for the next 5 years, access our complete list of the top contenders here.

Large-cap technology stocks occupy an interesting position in this environment. They offer exposure to established businesses outside the largest technology companies, but their market valuations remain sensitive to changes in earnings expectations and spending patterns. For this article, we define large-cap stocks as companies with market capitalizations between $30 billion and $100 billion. Those exceeding $100 billion are classified as mega-cap stocks, which readers can explore separately in our article on the 12 Best Big Tech Stocks to Buy According to Wall Street Analysts.

Monolithic Power Systems, Inc. (NASDAQ:MPWR) made our list of the best large-cap tech stocks to buy according to billionaires with 25 billionaire investors backing it up. In addition, 69 hedge funds are bullish on the stock, making MPWR a very popular stock in this space.

The expansion of AI computing infrastructure has created significant demand for power-management technology, an area where Monolithic Power Systems, Inc. (NASDAQ:MPWR) has established a growing business. Its semiconductor solutions manage and distribute electrical power across data centers, computing equipment, and other electronic systems.

The company’s third-quarter 2026 results illustrate that opportunity. Enterprise Data revenue reached $506.7 million, up 33.2% from Q2. Overall revenue increased 63.1% year-over-year to $1.2024 billion. However, the pace of expansion also places pressure on operating expenses. While quarterly revenue rose 22.6% sequentially, GAAP operating expenses increased 29.8%. Consequently, GAAP operating margin declined from 31.0% in the second quarter to 29.7% in the third.

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This does not negate the company’s growth, but it highlights why investors should examine profitability alongside accelerating demand. Monolithic Power’s increasing exposure to enterprise data infrastructure also makes customer spending decisions particularly important. Its ability to maintain margins while expanding across AI-related markets will be central to determining how effectively revenue growth translates into earnings.

While we acknowledge the risk and potential of MPWR as an investment, we believe certain AI infrastructure stocks offer far stronger long-term potential at a much more attractive entry point. If you are looking for an AI stock more promising than MPWR that operates as a critical AI tollbooth and stands as the most important company in the world, check out our report about this must-own AI stock.

This article is originally published at Insider Monkey.