Oct 30 (Reuters) - Monolithic Power Systems ( MPWR )

forecast fourth-quarter revenue above Wall Street estimates on

Wednesday, but guided for a sequential drop in sales as weak

end-market demand for EVs potentially hampers sales of its power

control products and semiconductors used in vehicles, offsetting

AI-linked benefits.

Shares of the Kirkland, Washington-based company fell about

9% in trading after the bell, as it failed to impress investors

accustomed to blockbuster beat-and-raise quarters from AI-linked

chip firms.

The company forecast fourth-quarter revenue between $600

million to $620 million, with a midpoint of $610 million, above

analysts' average estimate of $602.7 million. At the midpoint,

sales would sequentially decline close to 2%.

Revenue grew more than 22% sequentially in the September

quarter.

A boom in the adoption of generative AI technology has led

to an increase in demand for the hardware required to help run

advanced data centers, helping providers like Monolithic Power ( MPWR ).

However, weak end-market demand for EVs has potentially

hampered sales of its products used in vehicles, limiting its

ability to outperform estimates by a large margin.

Weakness in automotive, industrial, and communications

markets persists for Monolithic Power ( MPWR ), Morningstar analysts said

in August, adding that the company is still gaining share in

these industries during downturns.

Revenue for the third quarter stood at $620.1 million,

compared with analyst's estimates of $600.6 million, according

to LSEG data.

Adjusted profit for the September quarter stood at $4.06 per

share. Analysts had expected $3.97.