Canadian Halal Investor.

NASDAQ Shariah screener · October 2026

Is Monolithic Power Systems, Inc. (MPWR) Halal?

PASS

Monolithic Power Systems, Inc. · NASDAQ: MPWR · Technology

The short answer

Yes — Monolithic Power Systems (MPWR) passes this Shariah stock screen. The fabless semiconductor company (analog and power-management ICs, founded 1997) has no prohibited business lines and carries zero interest-bearing debt — 0.0% of its ~$66.8 billion market cap ($1,360.97 share price, October 2, 2026); the FY2025 10-K balance sheet has no bank-loan or bond lines and Note 7 confirms no finance lease arrangements. Interest income of $29.151 million is about 1.04% of FY2025 revenue ($2,790.459 million), under the 5% non-compliant income ceiling. Zoya rates MPWR Shariah-compliant and Musaffa rates it halal (both as of September 2026); no dedicated ShariaPortfolio rating was found — reported as absent, not invented. This is a factual screen from the company's filings, not a religious ruling.

Gate 1 — Business activity: PASS

Monolithic Power Systems, Inc. (NASDAQ: MPWR) is a fabless global company that provides high-performance, semiconductor-based power electronics solutions, founded in 1997 (Item 1, FY2025 Form 10-K). It designs high-performance analog and power-management integrated circuits — DC-to-DC converters, power modules, battery chargers, power-management ICs, motor drivers, LED drivers, and voltage regulators — sold into storage and computing, enterprise data, automotive, industrial, communications, and consumer end markets. Manufacturing, assembly, and testing are outsourced to third-party foundries. None of the disclosed business lines — semiconductor design and sales — are prohibited lines (no alcohol, gambling, pork, conventional banking/insurance, tobacco, cannabis, or adult entertainment). Gate 1 passes. Facts only.

Gate 2 — Debt and cash: PASS

At December 31, 2025 the company reported zero interest-bearing debt: the balance sheet's $662.7 million of total liabilities is made up of accounts payable ($138.3 million), accrued compensation ($86.0 million), other accrued liabilities ($145.1 million), income tax liabilities ($75.0 million), deferred tax liabilities ($90.5 million), and other long-term liabilities ($127.8 million — deferred compensation plan, operating lease liabilities, dividend equivalents). Note 7 confirms the company has no finance lease arrangements — there are no bank-loan or bond lines anywhere on the balance sheet. Against a market cap of about $66.8 billion (share price $1,360.97, October 2, 2026), debt ÷ market cap is 0.0%, far below the ~33% ceiling. Cash and cash equivalents of $1,099.3 million plus short-term investments of $157.2 million total about $1.26 billion, roughly 1.88% of market cap, within the ~33% guideline. Gate 2 passes. Facts only.

Gate 3 — Non-compliant income: PASS

Interest income was $29.151 million for the fiscal year ended December 31, 2025 (Note 10, Other income, net), against total revenue of $2,790.459 million — about 1.04% of revenue, well below the 5% non-compliant income ceiling. The 10-K describes the interest as earned on investment positions restricted to high-quality debt instruments with short-term maturities, and notes the interest-rate impact on interest income was immaterial. No lending, margin, or interest-based revenue lines are disclosed. Gate 3 passes. Facts only.

Key figures used

Frequently asked questions

What does Monolithic Power Systems do?

Monolithic Power Systems (NASDAQ: MPWR) is a fabless global company that provides high-performance, semiconductor-based power electronics solutions. Founded in 1997, its core strengths are system-level knowledge, semiconductor design expertise, and proprietary process and packaging technology. Its products include DC-to-DC converters, power modules, battery chargers, power-management integrated circuits, motor drivers, LED drivers, and voltage regulators, serving storage and computing, enterprise data, automotive, industrial, communications, and consumer end markets. It outsources manufacturing, assembly, and testing to third parties. None of the disclosed business lines are prohibited lines (no alcohol, gambling, pork, conventional banking or insurance, tobacco, cannabis, or adult entertainment), so the business gate passes.

Why does Monolithic Power Systems pass this Shariah stock screen?

Monolithic Power Systems passes this Shariah stock screen on all three gates. Its fabless semiconductor business (analog and power-management ICs) has no prohibited lines. It carries zero interest-bearing debt — the FY2025 10-K balance sheet has no bank-loan or bond lines, and Note 7 states the company has no finance lease arrangements — so debt divided by market cap is 0.0%, far under the 33% ceiling. Interest income was $29.151 million in FY2025 against revenue of $2,790.459 million, about 1.04%, under the 5% non-compliant income ceiling. This is a factual screen based on the company's filings, not a religious ruling — consult a qualified scholar for personal guidance.

What is Monolithic Power Systems' interest-bearing debt ratio?

At December 31, 2025, Monolithic Power Systems reported no interest-bearing debt at all: total liabilities of $662.7 million consist of accounts payable ($138.3 million), accrued compensation ($86.0 million), other accrued liabilities ($145.1 million), income tax liabilities ($75.0 million), deferred tax liabilities ($90.5 million), and other long-term liabilities ($127.8 million — deferred compensation plan, operating lease liabilities, dividend equivalents). Note 7 of the FY2025 10-K confirms the company has no finance lease arrangements. Debt divided by market cap is therefore 0.0% against a market cap of about $66.8 billion ($1,360.97 share price, October 2, 2026) — far below the 33% ceiling. Cash and cash equivalents of $1,099.3 million plus short-term investments of $157.2 million total about $1.26 billion, roughly 1.88% of market cap, within the 33% guideline.

What is Monolithic Power Systems' non-compliant income ratio?

For the fiscal year ended December 31, 2025, Monolithic Power Systems reported interest income of $29.151 million (Note 10, Other income, net) against total revenue of $2,790.459 million — about 1.04% of revenue, well under the 5% non-compliant income ceiling. The 10-K describes the interest as earned on the company's investment positions, which are restricted to high-quality debt instruments with short-term maturities; the MD&A says interest-rate changes had an immaterial effect on interest income. On this audited full-year basis, the income gate passes.

Do Zoya, Musaffa, or ShariaPortfolio cover Monolithic Power Systems?

Zoya covers Monolithic Power Systems (MPWR) and, as of September 2026, reports it as Shariah-compliant based on the company's latest financial reports. Musaffa also covers MPWR and, as of September 2026, classifies it as halal under its AAOIFI screening methodology. No dedicated ShariaPortfolio rating page for MPWR was found — honestly reported as absent, not invented (ShariaPortfolio's public stock screener is powered by a third-party provider, MuslimXchange). This page applies the screen directly from the company's FY2025 Form 10-K filed with the SEC.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).