Is Monolithic Power Systems Stock Halal?
Monolithic Power Systems, Inc. · MPWR · NASDAQ
Monolithic Power Systems, Inc. (MPWR) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-03-31) interest-bearing debt is 0.0% of market cap and cash plus interest-bearing securities 1.8% — both inside the 30% AAOIFI thresholds. It is not held by Shariah-screened ETFs SPUS or HLAL. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified.
Financial data as of 2026-03-31 · Screening basis: AAOIFI · Last reviewed 2026-06-15
Our Analysis
Monolithic Power Systems is a fabless semiconductor company focused on power-management chips — the kind of hardware that regulates voltage in servers, laptops, cars, and industrial gear. That is a permissible technology business: revenue comes from selling ICs, not from interest-based lending or insurance underwriting.
On financial ratios, MPWR carries very low debt relative to its large market capitalization and holds modest cash. Filing-verified impermissible income is immaterial versus revenue — under the 5% AAOIFI ceiling on our screen. Any incidental interest on cash should be purified from dividends, but it does not drive the verdict.
Zoya publicly lists MPWR as Shariah-compliant. We did not find MPWR in the SPUS schedule of investments dated February 28, 2026 or among HLAL's published top holdings in June 2026; index composition changes and market-cap banding mean absence from a published top-holdings list is not the same as a failed screen. Check current ETF holdings if index validation matters to your methodology.
Practical takeaway: MPWR is a clean semiconductor case on business activity and ratios — halal on our AAOIFI screen with standard purification and periodic re-checks as the share price and filings update.
Business Activity Screen
Monolithic Power Systems designs, develops, and markets high-performance power-management semiconductors — primarily DC-to-DC converter ICs and lighting-control ICs sold into computing, storage, automotive, industrial, and communications end markets. The 10-K describes a fabless semiconductor model: permissible technology hardware with no conventional finance or insurance core.
Semiconductor product revenue dominates. Interest income is immaterial on our filing-verified screen (under 5% of revenue). No alcohol, gambling, or lending segments are disclosed.
Financial Ratio Screen
| Screen | Value | AAOIFI limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 0.0% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 1.8% | < 30% | Pass |
| Impermissible income / total revenueInterest income $29.2M on $2.79B total revenue (Monolithic Power Systems, Inc. FY2025 (fiscal year ended 2025-12-31, Form 10-K)) = 1% — under AAOIFI's 5% limit. | 1.0% | < 5% | Pass |
Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-03-31 · thresholds per AAOIFI Shariah standards.
This verdict uses the AAOIFI standard — the most widely used and, at a 30% debt limit, the most conservative mainstream Shariah standard. Interest-bearing debt and interest-bearing securities each stay under 30% of market cap, and impermissible income under 5% of revenue. Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets, so a borderline company can be rated differently by each. How we screen & why screeners disagree →
How Monolithic Power Systems screens across Shariah standards
All three mainstream bases below reach the same conclusion for this company.
| Standard | Debt | Cash & interest securities | Limit / basis | Result |
|---|---|---|---|---|
| AAOIFI (our standard) | 0.0% | 1.8% | < 30% of market cap | Pass |
| Dow Jones Islamic / S&P Shariah thresholdDow Jones and S&P apply this limit against a trailing 24–36-month average market cap; shown here on the same point-in-time market cap for comparison. | 0.0% | 1.8% | < 33% of market cap | Pass |
| MSCI Islamic / FTSE Yasaar basisTotal-assets denominator. MSCI/FTSE also apply entry/exit buffers and a receivables screen we do not reproduce. | 0.0% | 30.7% | < 33.33% of total assets | Pass |
HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-03-31) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded). The impermissible-income screen (< 5% of revenue) is common to all of these standards and is shown in the ratio table above. Dow Jones and S&P apply their limit against a trailing 24–36-month average market cap; MSCI and FTSE add entry/exit buffers and a receivables screen. Full methodology →
Scholars' & Screeners' Positions
Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.
SP Funds S&P 500 Sharia ETF (SPUS)
Not held in SPUS as of 2026-06-15. Absence can reflect screen failure or index scope — verify before citing as a screen outcome.
Source →Wahed FTSE USA Shariah ETF (HLAL)
Not held in HLAL as of 2026-06-15. Absence can reflect screen failure or index scope — verify before citing as a screen outcome.
Source →Zoya
Rates MPWR Shariah-compliant under its AAOIFI-based screen (checked 2026-06-15).
Source →
Purification
Even Shariah-compliant companies typically earn a small amount of incidental interest on corporate cash. The standard practice is to purify: donate the proportion of your dividends (and, per some scholars, capital gains) attributable to impermissible income. Our purification calculator automates the math from your holding and the company's disclosed figures.
Purification calculatorKeep your portfolio halal
A pass today isn't a pass forever — ratios drift across thresholds between filings. A halal screener monitors holdings continuously.
Related guides
Consider Consulting an Islamic Scholar
Major whether Monolithic Power Systems, Inc. is halal decisions often involve nuances that vary by scholarly opinion and personal circumstance. While HalalWallet provides educational comparisons and tools, we are not scholars or financial advisors. For personal guidance on Shariah compliance, consider speaking with a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor familiar with your situation.
Important: HalalWallet is an educational comparison platform. We do not provide financial, legal, or religious advice.
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- Review the contract structure (Murabaha, Ijara, Musharakah, etc.) and any disclosed Shariah board opinions.
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Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-06-01
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