Monolithic Power Systems, Inc (NASDAQ: MPWR) Q3 2025 Earnings Call dated Oct. 30, 2025
Corporate Participants:
Bernie Blegen — Executive Vice President and Chief Financial Officer
Michael R. Hsing — Chairman of the Board, President and Chief Executive Officer
Tony Balow — Vice President of Finance and Treasurer
Analysts:
Joshua Buchalter — Analyst
Ross Seymore — Analyst
Joe Quatrochi — Analyst
Quinn Bolton — Analyst
Tore Svanberg — Analyst
Rick Schafer — Analyst
Gary Mobley — Analyst
Chris Caso — Analyst
Kelsey Chia — Analyst
Jack Egan — Analyst
Presentation:
Operator
Welcome everyone, to the MPS Third Quarter 2025 Earnings Webinar. My name is Arthur Lee, and I’ll be the moderator for this webinar. Joining me today are Michael Hsing, CEO and Founder of MPS; Bernie Blegen, EVP and CFO; Tony Balow, Vice President of Finance. Earlier today, along for our earnings announcement, MPS released a written commentary on the results of our operations. Both documents can be found on our website. Before we begin, I would like to remind everyone that in the course of today’s presentation, we may make forward-looking statements and projections within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties.
The risks, uncertainties and other factors that could cause actual results to differ from these forward-looking statements are identified in the safe-harbor statements contained in the Q3 2025 earnings release, our Q3 2025 earnings commentary and in our SEC filings, including our Form 10-K, which can be found on our website. Our statements are made as of today and we assume no obligation to update this information.
Now, I would like to turn the call over to Bernie Blegen.
Bernie Blegen — Executive Vice President and Chief Financial Officer
Thanks, Arthur. Good afternoon, and welcome to our Q3 2025 earnings call. In Q3, MPS achieved record quarterly revenue of $737.2 million, 10.9% higher than the second quarter of 2025 and 18.9% higher than Q3 of 2024. This performance reflected the ongoing strength of our diversified market strategy, consistent execution, continued innovation and relentless customer focus. Let me call-out a few highlights from the third quarter. Our diversified market strategy drove year-over-year revenue growth in all of our end-markets.
We continued to expand our automotive customer-base with another major Tier-1 supplier adopting MPS for its next-generation ADAS solution. Additionally, we secured our first design win for a full BMS solution on a robotics platform, which further supports our transformation from being a chip only semiconductor supplier to a full service silicon-based solutions provider.
Overall, we continue to demonstrate our ability to grow and swiftly adapt to all aspects of our business to the fluid geopolitical and macroeconomic environment. Our proven long-term growth strategy remains intact as MPS focuses on innovation and solving our customers’ most challenging problems. We continue to invest in new technology, expand into new markets and to diversify both our end-market applications and global supply chain. This will allow us to capture future growth opportunities, maintain supply chain stability and quickly adapt to market changes as they occur.
I will now open the webinar up for questions.
Questions and Answers:
Operator
Thank you, Bernie. Analysts, I would now like to begin our Q&A session. [Operator Instructions] Our first question is from Josh Buchalter of Cowen. Josh, your line is now open.
Joshua Buchalter
Hey guys, thank you for taking my question and congrats on another beat and raise. I guess to start, maybe you’re guiding up about a percent. Can you give us the puts and takes of which end-markets you expect to grow more or less? And of note, I think earlier you mentioned enterprise data was expected to be flat-to-down 20%, any updates to the guidance for that segment in particular? Thank you.
Bernie Blegen
Sure, Josh. When you look at Q3, I think that we saw a little bit better-than-anticipated performance in both our enterprise data and industrial markets. We had pretty much every other group was as we anticipated. Looking ahead and I know that you’re interested in enterprise data, we’re seeing a layering of additional customers that began in this layering effect in Q4 and is providing this good momentum as we look-ahead into the early part of next year.
Michael R. Hsing
I should add all these in a script readout, Bernie mentioned a list of market segment and they’ve started growing and we look-back in the last few quarters, all these growth come from greenfield products that were released two, three years ago. And now we see the result and so in the near futures in the next few quarters, I know we will see these will continue to enhance our revenues.
Joshua Buchalter
Thank you for the color there. Maybe a follow-up on that, Michael. I think you’ve been pretty clear like philosophically, you have some reservations and even frustrations with the AI market because of the concentration and visibility. Given all the massive announcements over the last quarter even or in that space. Maybe you could spend a couple of minutes talking to us about just big-picture philosophically how you’re approaching these huge forecasts and I’m sure competitive sockets with massive scale, how do you guys figure out which opportunities to go after and service and your thoughts on the market just given I think you’ve had frustrations about it distracting from your diversified growth? Thank you both.
Michael R. Hsing
Yeah, as you said, yeah, it is a good — it is kind of a destruction, okay, but business is a business. So, the good money is a good money, okay? We don’t want to take a bad money, okay? And but overall, the bottom-line is MPS want to demonstrate in any segment of the market, we are the best — we have possessed the best technology and the best customer service. And we’re solving problems, we demonstrated that we can have our qualities and shipments and okay, all these segment — all these categories, we are the best company. And in terms of which segment — which AI company, we don’t really care. We engage with the large companies and the small companies. And we want to demonstrate that this is the best technology. When the revenue comes, it comes. And given times as we said it, given time every all the true color will show.
Joshua Buchalter
Thank you, Michael.
Operator
Our next question is from Ross Seymore of Deutsche Bank. Ross, your line is now open.
Ross Seymore
Hi guys. Can you hear me?
Michael R. Hsing
Just fine, Ross.
Ross Seymore
Perfect. Thank you. I guess for my first question, the automotive side of things, you talked about getting an incremental design-win in he ADAS side of things. There’s a lot of choppiness in that end-market across different Geos and at different points in time cyclically geopolitically, all those sorts of things. But from a secular growth perspective, can you just talk about ADAS as a percentage of your revenues now versus user interface or USB and those sorts of things and how ADAS penetrating more of that market changes the growth rate, the content, the diversity of it? Just kind of want to capture that ADAS theme and what it really means to you?
Bernie Blegen
Sure. Why don’t I take a start at this. So I think that we’ve demonstrated a history of establishing a strong presence in various markets with differentiated technology. You might recall going back away is — was USB ports for automotive. And now it’s ADAS. And what this does is it has a cascading effect where we’re able to get adoptions and the design-wins and we call out when these begin to ramp. And that’s actually been more important to us than the — necessarily the — what the SAR is for a particular end-market. And in this one in particular, we have started with a lot of ADAS opportunities, particularly in the EVs because they’re faster to come to-market. But what that’s given us the opportunity has been is to showcase all of our other technologies and now we’re starting to see those ramp, whether it’s in body electronics or different applications. And what we’re more excited about is as we look-ahead and the transformation of the end market for automotive as it moves into 48-volt and zonal electronics.
Michael R. Hsing
Yeah, we don’t know the breakdown, okay, to answer your question exactly, okay. I mean that maybe Bernie, you have some idea or something. I think it’s less than half and I think it’s well less than half.
Bernie Blegen
It’s considered less than half.
Michael R. Hsing
Yeah, okay. And I’m just looking at the number of cars and also our revenues and I cannot be more than half, I can miss. But in the ADAS side, more-and-more cars and including combustion engine cars, they are adopting ADAS. We will see a significant growth in the — in the next few years. That’s where we anticipated, okay?
Ross Seymore
Great. Thanks for that color. I guess as my follow-up, pivoting to another thing you talked about in your press release of moving from a silica chip-based supplier to more of a solution provider. How do you think about the gross margin implications of that over-time? You guys were a few points higher than you are now a couple of years ago. We’ve talked about what does it take to get you back to kind of the upper 50s from the mid-50s-ish where you are today. Does that system approach help? Or is that actually a headwind in the gross margin as you go forward as much as it might even be operating margin-accretive?
Michael R. Hsing
I don’t think so — I don’t think that there will be a headwind, okay, I mean a lot of large system that we’re building okay, we’re kind of learning how to do it and it creates a lot of issues, okay? And once the volume goes up and so we are learning and I think it’s things get a lot better came in since last year, I guess, okay? I mean and it will improve quite a bit, we actually making our own tested equipment as a lot of people know about it, okay? We eat our own dog food and creating the all fully automated test systems. Those type of products never existed before and I ultimately will improve the yield and improve the gross margins.
Ross Seymore
Thank you.
Operator
Our next question is from Joe Quatrochi of Wells Fargo. Joe, your line is now open.
Joe Quatrochi
Yeah. Thanks for taking the questions. Maybe first, I just wanted to ask, embedded within the 4Q guide, is there any help you can kind of provide in just thinking about the end-markets? I think there’s some seasonality to maybe like in consumer in the fourth quarter. And then I think enterprise data, you guys were previously thinking that would be up somewhere like high-single digits sequentially in the December quarter. Is that still the case?
Michael R. Hsing
Yeah — So okay. To anticipating the market, that’s a very difficult call and you guys are betting on which stocks, okay? It’s a — it’s difficult, okay? And but we have our way of operating our business. We do the best. We do the best develop the technology, engage our customers closely and probably the same way that you pick how you pick a stocks okay and so you engage customers closely. Whatever happens and you can’t predict what the market is. And we don’t do that actually.
Bernie Blegen
And if I could just add to that since we last talked about the second half of this year, nothing has fundamentally changed in our positioning.
Joe Quatrochi
Okay. Thanks. Thanks for that. That’s helpful. Maybe just also following-up, like I think in the press release or prepared remarks, you had a comment around the first design-win for a full BMS solution for robotics platform. Can you talk about what drove that and how you think about the revenue opportunity ramping there and more wins in the future?
Michael R. Hsing
We probably get too excited to talk about those, okay. I mean in the fact that we got excited is that because we see robotics happening. I think they kind of we kind of predicted that that’s the BMS is going to happen, okay? And we got in and we design it in — and it’s — our customers engage with us, okay, there’s a ground-up systems that we developed. And we see more-and-more these type of a system will happen. So now these kind of system will be become a reality, so that’s the reason we pull out that.
Bernie Blegen
I’ll just add-on very specifically on that one. Clearly, we called it out because of the fact it was the first opportunity that we had the design went on. In terms of a revenue ramp, that’s really starting in 2026 and it’s not in and of itself necessarily a needle mover on the model. But I do think it sort of starts the wave of these full solution design-wins that we might have going-forward.
Michael R. Hsing
Yeah, that’s kind of — it’s the same kind of been making a point that is, okay, we do start to do robotics for the actuators and the IC for actuators in the BMS charging, wireless chargings and these are back a few years ago. We even don’t know that the robotics world were taking off, okay? I’ve been talking about robotics since 2017 or 18s and — but the AI assist robot are more-and-more believes, okay, that will really starting taking off. And so that’s kind of the projects that we think is we pick the winners, okay and we’re glad to see it and that’s why we’re probably too excited to talk about this.
Joe Quatrochi
Thank you.
Operator
Our next question is from Quinn Bolton of Needham. Quinn, your line is now open.
Quinn Bolton
Thank you. Congratulations, Michael, Bernie and Tony. I guess I wanted to start with a big-picture question just looking through this earnings season, Intel talked about sort of shortages of server CPUs, we’ve seen hyperscalers significantly increasing CapEx. NVIDIA talked about $0.5 trillion of demand in ’25, ’26. I guess my question is about a year-ago, I think you guys were seeing very, very short lead times in that business and dealing with some level of pricing pressure. I’m wondering as you look into the second half and more importantly into next year, have you started to see any change in customer lead times? Are they giving you better forecasts across the enterprise data segment and is the pricing on voltage regulators and vertical power, has that changed at all over the last eight quarter or so?
Bernie Blegen
Quinn, thanks for the question. Let me start that this remains a very dynamic market, we’re responding to a variety of requests when it comes to the orders and the expectations from our customers. So, in some ways, we’re getting improved predictability because we’re adding — we’re layering, as I said, more customers into the mix. But as far as the market itself and particularly with all the blockbuster announcements that have been coming out recently, you can see how quickly things are changing and what our position is that we can’t control our customers necessarily, but we can position the company to be as responsive as we can.
Quinn Bolton
Is this sort of dynamic market? I mean, folks are scrambling sort of to get capacity. Has that had any lifting effect on pricing? And then I’ll ask my second question.
Michael R. Hsing
Yeah. Well, the — at any market segment started to fund and ramped rapidly at the beginning, so always caused these imbalance supply in imbalance, okay? I mean, so in the AI side, clearly like that, okay? I mean, once it goes on some, okay, things are will smoose about.
Bernie Blegen
And then being specific to your question, I don’t think we’ve seen any recent or sustainable trends in pricing one-way or the other.
Quinn Bolton
Okay. Perfect. And then the second question for you, Bernie. Gross margins have been sort of on a sort of ticking down over the last year or two. Can you give us any sense, do you think they sort of stay-in this mid 55% 55.5% range? Is there some point next year that you start to see gross margin starting to move higher either driven by mix or new products or should we be thinking about margins being fairly flat over the next year or two?
Bernie Blegen
Sure. As I’ve commented on prior calls, we’ve seen about three or four quarters in a row, where I’d say that we have seen a strong uptick in-demand and that continued even today, what makes this cycle different than ones that we’ve experienced in the past is that the orders are more short-term in nature, we’re not seeing a large buildup in backlog in future quarters and so without that visibility, it limits our capacity to be able to manage the mix of business that we want to be able to have expansion in gross margin. So, for the foreseeable future, until the demand profile changes to elongate the buildup of backlog, I believe that we’re going to be in sort of the steady range, plus or minus 20 basis points 30 basis points in the mid 55 basis points.
Michael R. Hsing
Got it. We have a lot of products, okay, a few 1,000 products, okay, and a few 40,000, 50,000 customers and to more — and it’s very stable margins, I mean that and with the transitions to more solution provided at companies and as I said earlier, and all these has to be automated to them, okay? And as time goes on, so the margin will improve and but not quickly and mass is very big and so I can make — we know it’s operated on the low-end of our margin profiles, but I mean the — but the long — the longer-term will improve and we stick with that with a gross margin range.
Quinn Bolton
Got it. Thank you.
Operator
Our next question is from Tore Svanberg of Stifel. Tore, your line is now open.
Tore Svanberg
Yes. Thank you. Michael, Bernie, Tony, congrats on another record quarter. By the way, some of that dog food you’re referring to must be pretty proprietary stuff. But my first question is on the enterprise data segment. So, that’s about an $800 million business right now. And my understanding is you’re on a journey here, right, and you’re still selling predominantly chips, you are obviously moving into module subsystems, eventually systems. So, I’m not looking for any numbers per se, but could you sort of let us know where we are in that journey, I mean, building an $800 million business with chips and where could we eventually go here with obviously more-and-more subsystem type solutions for enterprise data.
Michael R. Hsing
If I understand your question correctly that I can answer that ways, we’re anticipating building millions of — millions of multiple millions of units per month type of shipment and all of these — all these integrate — highly integrated modules never existed before. So, how do we test this thing, how we achieved in a single — low-single digit PPM failures okay? That is a — never encountered that kind of issues before, okay? And so we started using our own robotic systems to make that happens. So now can we achieve very-high volumes, 100% automated, including a reliability test and that’s our futures and the goal is building multiple million units a month for that 10 million a month for that. That’s the near-term of a goal.
Tore Svanberg
Yeah, that’s very helpful. Thank you for that, Michael. And did you also have a response to my question on the enterprise data? Again, where are we in this journey towards delivering more system-level solutions, especially to our talking about rack level power and so on and so forth?
Michael R. Hsing
This is at the very beginning, maybe I think it’s a module, power, skills and less than weight, less than a third, okay? And less than a third of our revenues and it grow in the last half years and the — we expect it to grow some got delayed and now start happening in the next years could be much more.
Tore Svanberg
Great. Thank you for that, Michael.
Bernie Blegen
And maybe just to add-on to the back of that, Tore, I think as you start talking about some of these solutions for 800-volt as you discussed, those are like, ’27, ’28 revenue ramps. So I think it supports what Michael was saying that we’re still at the front-end of this opportunity in the data center for us.
Tore Svanberg
Great. Thank you very much.
Michael R. Hsing
No, I think the investor — investment communities, it’s a — if you have 800-volts of technologies and a data center transformer is like a split switch, the lights turn-on, it’s turn-on. It’s not like that, okay? The light turned on, it takes a couple of years, okay? More than a couple of years to make a — to see the revenues, okay. These are take us three, four years.
Tore Svanberg
Great perspective. Thank you again.
Operator
Our next question is from Rick Schafer of Oppenheimer. Rick, your line is now open.
Rick Schafer
Thanks. And I’ll add my congratulations to you guys. Just maybe if I could start with an auto question, kind of a follow-up, but I know we talked about BMS robotics, but I know BMS becomes a bigger contributor for your auto segment next year and you mentioned a couple of things, Michael, an earlier question, but I’m just curious if you could give some guide rails and provide some guide rails about potential content trends for NPS as you start ramping some of those BMS opportunities, I mean, again, not asking for dollar content per car, but does it — does it double or triple those kinds of numbers, like what does it do to your potential content per vehicle moving into that BMS space in a more meaningful way? And as part of your answer, I’m curious, where some of the low — where some of the lowest-hanging fruit is for you guys? I mean, is it 48-volt, is it power isolation, that kind of thing? Thanks.
Michael R. Hsing
It’s actually all of them, okay? BMS revenues for all those and for EVs and it’s a bit far away and but our customer, it’s a very — this is a very concentrator market, there’s a few players in and a few — well, not a few car makers and gradually all of them they have — they want a BMS and so our customers are glad to see NPS is in this to develop that series of — that type of a product too. In terms of other low-hanging foods and okay, we see a fully ables as a trend and we develop all those products back-in a few years ago, like five, six years ago. And we provide all these integrated solution rather than these are discrete ones, okay? And the size can be 6 times, 7 times smallest, and the other one is 800 volts for EV and announcing, okay, all goes up and from 400 volts to 800 volts, okay? And in the China market, lot of cars already have 800 volts again, okay? So our silicon carbide solutions and not for traction inverters and for control systems, these are — these products will be shined. And so that’s a pulled off my hairs at this moment.
Tony Balow
And Rick, maybe just to shape you a little bit on timing there to make sure. I think what we said is the layering of opportunities in auto really sort of out of the end of this year and next year starts with design-wins that we have, bringing new content to-market per vehicle. You start to see zonal designs hit market next year then ramping through into ’27, and then the BMS and traction inverter solutions are really kind of more like ’27 and beyond, just to make sure we understand sort of how those revenue opportunities are layering in.
Rick Schafer
Thanks, Tony for that color and thanks, Michael. And then if I could ask for my follow-up, just it’s on HVDC and I appreciate the timing commentary you provided a second ago, Tony, but I’m also curious, I mean, I’m just trying to figure out the right way to think about that emerging market. I mean, like can you give a sense of how HVDA compares to sort of how you’ve described at your Analyst Day earlier this year, maybe how you described the 48-volt accelerator power opportunity or in any terms you want? Just to try to give a sense of what that market represents to you guys or what you think you could?
Michael R. Hsing
I think it’s a 48-volts system is a clearance and okay, there’s a reason why the 48-volts is going back to those telecom times, okay? And telephone systems is 48-volts plus-minus 48 volts okay? And/or plus-minus 45-volts and first it started with a — in the server side, okay, we talk about it for years this and it has to be the solutions because once the current goes up, everybody remembers the car using six volts of batteries and then it became 12, okay it’s ultimately okay moving up to 48-volts. I mean, these are all four control systems, 48-volts and the data center is already happening 48-volts. I see that’s why I predict all the building systems, all the building automations all going to be on 48-volts and the building will be a DC power solutions. And the opportunity is great and as we pull out to engage our customers with the building automation systems and we proved a point actually is so welcome for that type of a product. And so that’s a — that’s my view at this time.
Tony Balow
And Rick, I think part of your question was also on the 800-volt high voltage DC for data center as well, right?
Rick Schafer
Yes.
Tony Balow
And I think on that one, we’ve been pretty careful about trying to go size the opportunity because one, it’s very far-out; two, we don’t know how it will ramp-in the market. I think what we have said is since we don’t play in that part of the market today, the business we get is sort of all accretive to our overall SAM going forward. But I think we want to be careful about size in the market yet, given how far-out it is and not knowing how it will layer into the data centers going forward.
Rick Schafer
I appreciate that. Thanks you, guys.
Operator
Our next question is from Gary Mobley of Loop Capital. Gary, your line is now open.
Gary Mobley
Hey, guys. Let me extend my congratulations on the continued strong growth and continued execution. I appreciate the fact that you still only have about three to four months of visibility, given the capacity that you can support and the quick turns business you can support but can you confirm whether bookings continue to improve sequentially and what are the seasonal considerations as we look out into the first quarter?
Michael R. Hsing
So again, it’s very difficult for us to predict that, okay? What’s the booking, what’s the — where the bookings, okay? We build our inventories, we try to build and look at the inventory now and okay and we try to build-up as a case, we’re below our models. And whatever comes we anticipated again, we can swiftly to adapt.
Tony Balow
Yeah, just to add to that is that we really don’t have a lot of visibility into the first half of next year. We can definitely point to the normal drivers as far as both enterprise data and automotive are very well-positioned for new revenue ramps, but getting both the timing as well as getting that to balance out, we don’t have a strong view on Q1 yet.
Gary Mobley
Okay, appreciate that. And if I’m not mistaken, your distribution inventory as of mid-year was at the low-end of your five to eight week target range and it decreased in the June quarter. What was the trend sequentially for the September quarter and when might you take that distribution inventory back up to maybe the mid-to-upper part of that normal range?
Tony Balow
Yeah. Currently, the Q3 channel inventory was unchanged in terms of days from where it was in the prior quarter. So we take from that we’re satisfying real demand at this point, which again is a reflection of the quick turns business that we’re working with. Thank you.
Operator
Our next question is from Chris Caso of Wolfe Research. Chris, your line is now open.
Chris Caso
Yes, thank you. Good evening. The first question is on enterprise data and what are sort of the puts and takes as you look into next year? And of course, this year, there was a some changes in-market share in that which affected that business, but I guess I’m going to assume that things are cleaner as you go from this year into next year and I mean, one, do you expect to grow that business as you go into next year and then…
Michael R. Hsing
Well, it’s a cleaner. You said that this year the next year, this year is a — like we are doing pretty good this year, okay? I mean and see we and as I said earlier, the module business is growing, so, okay I mean so all these area MPS technology shines and the power — the higher-power the better it is, and because we provide the highest density of power density products that fits this market perfectly.
And in the next couple of years, you will see it, MPS is a major players in the — in this market segment, and also the market is big. We — it’s not — we don’t want a place — we don’t want to be MPS only, okay? You want to have a multiple. It’s good for the industry.
Tony Balow
Yeah, I could see enterprise data growing in the range of 30% to 40% in 2026 for us. Much of that though would be back in the second-half of the year. So while we’ve seen a number of new players that have been layered in, I think the material ramps are more weighted to the second half of ’26.
Chris Caso
That’s very helpful. If I could follow-on to that, since you provide a little bit of color on that, Bernie. When you look at that 30% to 40% growth, is that — you because I know that some of the vertical power designs, for example, you have more content, what’s the driver of that? Is it fairly broad based? Is it skewed towards some of the ASIC solutions more towards vertical power? Whatever kind of color you can give behind that 30% to 40% expectation?
Michael R. Hsing
Yeah as a CEO, I don’t know how to make a 40% cost, okay? I don’t know and the opportunities are there, okay, if we didn’t deliver 40% of stocks I see from $900 to $400, okay? That what kind of fuck up is that, okay? And so I don’t want to make them very poor just waiting for the numbers. Let the numbers short.
Chris Caso
Fair enough. Thank you.
Operator
Our next question is from Kelsey Chia of Citi Research. Kelsey, your line is now open.
Kelsey Chia
Hi. hi, Michael and Bernie. Thanks for taking my question. So, my question is on the competitive landscape and I was hoping if you could share more, especially with regards to material side of things like Gallium Nitride, Silicon Carbide, I think your biggest enterprise ADAS customer has been signing a lot of partnerships with all these semiconductor companies, and I was just wondering MPS positioning in those? And if you actually see those materials as being important in the next-generation of the power modules and chips?
Michael R. Hsing
We do our own silicon carbide and we’re building modules also we are seeing — we are using again, but that’s a very, very early-stage, we’re evaluating it. And also don’t forget about silicon. Silicon power MOSFETs okay, evolved and we engaged a lot of new development and a lot of the data showed it can be very cost-effective and also can compete with the silicon carbide.
Kelsey Chia
Got it. Thank you. And..
Michael R. Hsing
That’s a very new — that’s a very, very recent development.
Kelsey Chia
Yeah. Okay, got it. And I would just like to have a sense of how do you guys feel today versus a quarter ago, especially you guys have come a long way since the start of the year when you’re dealing with all these market-share changes, visibility on the ASIC customers and things like that and given the slew of announcements from all these big mega partnerships, how do you see that relative to opportunities? And also given the maturity of the supply-chain, I believe like things are probably — the supply chain partners are getting to a good cadence. So, how do you guys feel with regards to those recent announcements relative to your opportunity set?
Michael R. Hsing
I don’t measure quarter by quarters I measure by multiple years so, I can’t tell you that.
Kelsey Chia
Okay.
Tony Balow
I guess the simplest way is we’re very broadly indexed across not just the merchant vendors or large ASICs, but medium and small time opportunities. And all of these need to find their way into the marketplace and it’s right now, we’re still very, very early in the process. So, as Michael said, it’s very hard to sort out in any particular time period, but I think that we’re as well indexed amongst all the opportunities as anybody in this market.
Kelsey Chia
Okay. Thank you.
Operator
Our last question is from Jack Egan of Charter Equity Research. Jack, your line is now open.
Jack Egan
Great. Thank you for taking the questions. I have one on enterprise data and then one on modules more broadly. So, the shift to modules and vertical power delivery with the custom ASIC ramp should be a pretty big tailwind for MPS, I’m kind of wondering about what the main drivers have been, at least so-far for those customers they’re switching from lateral to modules or vertical power. So, I’m not really sure if you have this level of granularity, but among the major benefits like higher-power density, higher efficiency, smaller footprint on the top side of the board, et cetera, is there any one characteristic that’s kind of being cited by your customers as the main reason that they are moving to those modules or vertical power delivery?
Michael R. Hsing
Well, we don’t see from the from a chip to module. Whoever stays the module stays the module start with the module, whoever stays the chip stay with the chip okay and so MPS provides the both, okay? In a both chip solutions and module solutions and at this time, okay and so, I don’t know if you answer that question for you.
Jack Egan
Got it. Okay. And then just kind of on the modules more broadly, I think — I believe if I understood it correctly, last quarter you mentioned that modules outside enterprise data could be like 10% to 15% of your total revenues. And so I was curious how much of your revenue base or I guess, addressable market outside enterprise data would be eligible for switching to modules. I mean, even if you’re looking several years into the future, how high could that mix of modules outside enterprise data go?
Michael R. Hsing
Well, that’s a good question, okay? And we want to — we built those modules and get very similar to intern price modules, okay? In a — since 2017 and industrial markets adopting — adoption is kind of slows and actually faster than telecoms again and that these are two market segment we focus on. And then to our surprise, again, the auto industries also want to use it and because it’s easy to implement.
And so they don’t want to semi-equipment and that’s a large segment, we didn’t realize that, okay? I mean and now we see all these revenues are happening there. So, I think that in the next couple of years will be grow faster than three or four years ago and so, we’re picking-up a business the rate of increases is picking-up.
Jack Egan
Got it. Thanks, Michael. That’s helpful.
Operator
This concludes our Q&A session. I would now like to turn the webinar back over to Bernie.
Bernie Blegen
I’d like to thank you for all joining us in this conference call. I look-forward to talking to you again during our fourth quarter 2025 conference call, which will likely be held in early February. Thank you, and have a nice day.